The Seller's listing strategy in online auctions: evidence from eBay
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
|Date of creation:||27 Mar 2012|
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- Jong-Rong Chen & Kong-Pin Chen & Chien-Fu Chou & Ching-I Huang, 2013. "A Dynamic Model of Auctions with Buy-It-Now: Theory and Evidence," Journal of Industrial Economics, Wiley Blackwell, vol. 61(2), pages 393-429, 06.
- Chen, Jong-Rong & Chen, Kong-Pin & Chou, Chien-Fu & Huang, Ching-I, 2006. "A dynamic model of auctions with buy-it-now: theory and evidence," MPRA Paper 38371, University Library of Munich, Germany, revised 24 Nov 2011.
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