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Tractors on eBay: Differences between Internet and In-Person Auctions

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  • Florian Diekmann
  • Brian E. Roe
  • Marvin T. Batte

Abstract

We provide a systematic examination of the differences between Internet and in-person auction prices for used tractors. A hedonic model estimated with transactions pooled between eBay and in-person auctions reveals statistically distinct price surfaces for the two auction venues and predicts significantly lower prices for comparable equipment sold on eBay, though this difference is attenuated for tractors fully covered by eBay's buyer protection program and is fully absent for the most frequently traded tractor. An endogenous venue selection model reveals that larger, more valuable tractors from states with more valuable stocks of machinery are more likely to be offered on eBay. Copyright 2008, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01113.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 90 (2008)
Issue (Month): 2 ()
Pages: 306-320

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Handle: RePEc:oup:ajagec:v:90:y:2008:i:2:p:306-320

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Cited by:
  1. Eric Overby & Chris Forman, 2011. "The Effect of Electronic Commerce on Geographic Trade and Price Variance in a Business-to-Business Market," Working Papers 11-30, NET Institute.
  2. Kevin Hasker & Robin Sickles, 2010. "eBay in the Economic Literature: Analysis of an Auction Marketplace," Review of Industrial Organization, Springer, vol. 37(1), pages 3-42, August.
  3. Milovanović, Slavoljub, 2014. "The Role And Potential Of Information Technology In Agricultural Improvement," Economics of Agriculture, Institute of Agricultural Economics, vol. 61(2).

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