Everybody (except Amazon) will probably end up worse off. See Thaler's famous paper on the "Winner's Curse." http://econweb.ucsd.edu/~jandreon/Econ264/papers/Thaler%20JE...

I'm not sure what to make of this overall. The Federal Government should probably regulate this kind of behavior or at least sweeten the payoff of state cooperation. Our anti-trust regulators are really asleep at the wheel.