Learning from Seller Experiments in Online Markets
AbstractThe internet has dramatically reduced the cost of varying prices, displays and information provided to consumers, facilitating both active and passive experimentation. We document the prevalence of targeted pricing and auction design variation on eBay, and identify hundreds of thousands of experiments conducted by sellers across a wide array of retail products. We show how this type of data can be used to address questions about consumer behavior and market outcomes, and provide illustrative results on price dispersion, the frequency of over-bidding, the choice of reserve prices, "buy now" options and other auction design parameters, and on consumer sensitivity to shipping fees. We argue that leveraging the experiments of market participants takes advantage of the scale and heterogeneity of online markets and can be a powerful approach for testing and measurement.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17385.
Date of creation: Sep 2011
Date of revision:
Note: IO PR
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Liran Einav & Theresa Kuchler & Jonathan Levin & Neel Sundaresan, 2011. "Learning from Seller Experiements in Online Markets," Discussion Papers 10-033, Stanford Institute for Economic Policy Research.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jennifer Brown & Tanjim Hossain & John Morgan, 2010. "Shrouded Attributes and Information Suppression: Evidence from the Field," The Quarterly Journal of Economics, MIT Press, vol. 125(2), pages 859-876, May.
- Patrick Bajari & Ali Horta�su, 2004. "Economic Insights from Internet Auctions," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 457-486, June.
- Nicola Lacetera & Bradley J. Larsen & Devin G. Pope & Justin R. Sydnor, 2013. "Bid Takers or Market Makers? The Effect of Auctioneers on Auction Outcomes," NBER Working Papers 19731, National Bureau of Economic Research, Inc.
- Liran Einav & Chiara Farronato & Jonathan D. Levin & Neel Sundaresan, 2013. "Sales Mechanisms in Online Markets: What Happened to Internet Auctions?," NBER Working Papers 19021, National Bureau of Economic Research, Inc.
- Wang, Zhongmin & Xu, Minbo, 2013. "Selling a Dollar for More Than a Dollar? Evidence from Online Penny Auctions," Discussion Papers dp-13-15, Resources For the Future.
- Liran Einav & Jonathan D. Levin, 2013.
"The Data Revolution and Economic Analysis,"
NBER Working Papers
19035, National Bureau of Economic Research, Inc.
- Liran Einav & Jonathan Levin, 2014. "The Data Revolution and Economic Analysis," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 1 - 24.
- Liran Einav & Jonathan Levin, 2013. "The Data Revolution and Economic Analysis," NBER Chapters, in: Innovation Policy and the Economy, Volume 14, pages 1-24 National Bureau of Economic Research, Inc.
- Jonathan D. Levin, 2011.
"The Economics of Internet Markets,"
NBER Working Papers
16852, National Bureau of Economic Research, Inc.
- Benjamin Edelman, 2012. "Using Internet Data for Economic Research," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 189-206, Spring.
- Liran Einav & Dan Knoepfle & Jonathan Levin & Neel Sundaresan, 2014.
"Sales Taxes and Internet Commerce,"
American Economic Review,
American Economic Association, vol. 104(1), pages 1-26, January.
- Liran Einav & Jonathan Levin & Neel Sundaresan, 2012. "Sales Taxes and Internet Commerce," Discussion Papers 11-012, Stanford Institute for Economic Policy Research.
- Liran Einav & Dan Knoepfle & Jonathan D. Levin & Neel Sundaresan, 2012. "Sales Taxes and Internet Commerce," NBER Working Papers 18018, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.