Chen, Kong-Pin and Liu, Yu-Sheng and Yu, Ya-Ting (2012): The Seller's listing strategy in online auctions: evidence from eBay.
Download (242kB) | Preview
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, Pricing, and Design > D44 - Auctions
D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, Operations, and Impact
|Depositing User:||Kong-Pin Chen|
|Date Deposited:||26 Apr 2012 12:58|
|Last Modified:||24 May 2016 12:54|
Anderson, S., D. Friedman, G. Milam, and N. Singh (2008), Buy it Now: A Hybrid Internet Market Institution," Journal of Electronic Commerce Research, 9, 137-53.
Bajari, P. and A. Hortacsu (2004), Economic Insight from Internet Auctions," Journal of Economic Literature, 42, 457-86.
Bose, S. and A. Daripa (2009), Optimal Sale Across Venues and Auctions with a Buy-it-Now Option," Economic Theory, 38, 137-68.
Budish, E. and L. Takeyama (2001), Buy Prices in Online Auctions: Irrationality on the Internet?," Economic Letters, 73, 325-33.
Chakraborty, I. and G. Kosmopoulou (2004), Auctions with Shill Bidding," Economic Theory, 24, 271-87.
Chen, J.-R., K.-P. Chen, C.-F. Chou and C.-I. Huang (2011), A Dynamic Model of Auctions with Buy-it-Now: Theory and Evidence," mimeo.
Engelberg, J. and J. Williams (2009), eBay's Proxy Bidding: A License to Shill," Journal of Economic Behavior and Organization, 72, 509-26.
Etzion, H., E. Pinker and A. Seidmann (2006), Analyzing the Simultaneous Use of Auctions and Posted Prices for On-line Selling," Manufacturing & Service Operations Management, 8, 68-91.
Hammond, R.G. (2010), Comparing Revenue from Auctions and Posted Prices," In- ternational Journal of Industrial Organization, 28, 1-9. Haruvy, E. and Peter T.L. Popkowski Leszczyc (2009), Internet Auctions," Foundations and Trends in Marketing, 4, 1-75.
Hasker, K. and R. Sickles (2010), eBay in the Economic Literature: Analysis of an Auction Marketplace," Review of Industrial Organization, 37, 3-42.
Hidvegi, Z., W.Wang and A.B. Whinston (2006), Buy-Price English Auction," Journal of Economic Theory, 129, 31-56.
Livingston, J.A. (2005), How Valuable is a Good Reputation?" Review of Economics and Statistics, 87, 453-65.
Lucking-Reiley, D. (2000), Auctions on the Internet, What's being Auctioned, and How?," Journal of Industrial Economics, 48, 227-52.
Mathews, T. (2004), The Impact of Discounting on an Auction with a Buyout Option: A Theoretical Analysis Motivated by eBay's Buy-it-Now Feature," Journal of Economics, 81, 25-52.
Mathews, T. and B. Katzman (2006), The Role of Varying Risk Attitudes in an Auction with a Buyout Option," Economic Theory, 27, 597-613.
Ockenfels, A. and A.E. Roth (2006), Late and Multiple Bidding in Second Price Inter-net Auctions: Theory and Evidence Concerning Dierent Rules for Ending an Auction," Games and Economic Behavior, 55, 297-320.
Ockenfels, A., D. Reiley and A. Sadrieh (2006), Online Auctions" In T.J. Hendershott (Ed.), Handbooks in Information Systems I, Handbook on Economics and Information Systems, pp.571-628, Amsterdam: Elsevier Science.
Pinker, E., A. Seidmann and Y. Vakrat (2003), Managing Online Auctions: Current Business and Research Issues," Management Science, 49, 1457-84.
Reynolds, S. and J. Wooders (2009), Auctions with a Buy Price," Economic Theory, 38, 9-39.
Roth, A.E. and A. Ockenfels (2002), Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," American Economic Review, 92, 1093-1103.
Vakrat, Y. and A. Seidmann (1999), Can Online Auctions Beat Online Catalogs?," Proc. 20th Internat. Conf. Inform. System (ICIS), Charlotte, NC.
Wang, R. (1993), Auctions versus Posted-Price Selling," American Economic Review, 83, 838-51.