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Winner's Curse, Reserve Prices and Endogenous Entry: Empirical Insights from eBay Auctions

Author

Listed:
  • Patrick Bajari

    (Stanford University)

  • Ali Hortacsu

    (Stanford University)

Abstract

Internet auctions have recently gained widespread popularity and are one of the most successful forms of electronic commerce. We examine a unique dataset of eBay coin auctions to explore the determinants of bidder and seller behavior. We first document a number of empirical regularities. We then specify and estimate a structural econometric model of bidding on eBay. Using our parameter estimates from this model, we measure the extent of the winner's curse and simulate seller revenue under different reserve prices. Copyright 2003 by the RAND Corporation.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Patrick Bajari & Ali Hortacsu, 2000. "Winner's Curse, Reserve Prices and Endogenous Entry: Empirical Insights from eBay Auctions," Econometric Society World Congress 2000 Contributed Papers 1927, Econometric Society.
    • Handle: RePEc:ecm:wc2000:1927
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    References listed on IDEAS

    as
    1. Donald, Stephen G & Paarsch, Harry J, 1993. "Piecewise Pseudo-maximum Likelihood Estimation in Empirical Models of Auctions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 121-148, February.
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