Optimal Fees in Internet Auctions
AbstractAn auction house runs a second-price auction with a possibility of resale through re-auctions. It collects listing and closing fees from the seller. We find the fees which maximize the revenue of the auction house. In particular, we show that the optimal listing fee is zero. Our findings are consistent with the policies of eBay, Amazon, Yahoo, and other Internet auctions.
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Bibliographic InfoPaper provided by Kyiv School of Economics in its series Discussion Papers with number 3.
Date of creation: Jan 2008
Date of revision:
Note: Published in Review of Economic Design, 12, 155-163 (2008)
Contact details of provider:
Postal: 13 Yakira Str, 04119 Kyiv
Web page: http://www.kse.org.ua/
More information through EDIRC
Internet auctions; auctions with resale; auction house; listing fee; closing fee;
Other versions of this item:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-09 (All new papers)
- NEP-GTH-2008-02-09 (Game Theory)
- NEP-ICT-2008-02-09 (Information & Communication Technologies)
- NEP-MKT-2008-02-09 (Marketing)
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