Chen, Kong-Pin and Liu, Yu-Sheng and Yu, Ya-Ting (2012): The Seller's listing strategy in online auctions: evidence from eBay.
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The paper empirically studies why the sellers of identical commodities adopt dier- ent auction formats in the online auction, and the consequences thereof. We postulate that the sellers adopt dierent auction formats because of the dierences in their ex- perience and the number of items they have. We rst use these two characteristics to endogeneize the seller's choice between three auction formats: xed-price, buy-it-now (BIN), and pure auctions. We then estimate the dierences in sales rate, transaction price, and sale duration between the three formats. We nd that the xed-price auc- tion results in the highest transaction price and the lowest sale rate, while the pure auction is just the opposite, with the BIN auction falling in between. These results strongly suggest that there is a tradeo between price and sale probability in adopting dierent formats of auctions. We
|Item Type:||MPRA Paper|
|Original Title:||The Seller's listing strategy in online auctions: evidence from eBay|
|Keywords:||online auctions, buy-it-now, selling format, listing strategy|
|Subjects:||L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade; e-Commerce
D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, and Operations
|Depositing User:||Kong-Pin Chen|
|Date Deposited:||26. Apr 2012 12:58|
|Last Modified:||16. Feb 2013 12:44|
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