Auctions with a Buy Price

Reynolds, Stanley S.; Wooders, John

doi:10.2139/ssrn.655362

Cited by 57 publications

(97 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For the bidder, it is optimal to execute the BIN option if and only if the continuation payoff π yy exceeds the continuation payoff π ny . In a situation with n bidders with private valuations that 8 We refer to Budish and Takayama (2001) [28], Matthews and Katzmann (2006) [29], Reynolds and Wooders (2006) [30] and Wang et al (2008) [20] for a more detailed discussion of the theoretical background.…”

Section: Hypothesismentioning

confidence: 99%

The Impact of the Irrelevant: Temporary Buy-Options and Bidding Behavior in Auctions

Peeters

Strobel

Vermeulen

et al. 2016

Games

View full text Add to dashboard Cite

Abstract:With a laboratory experiment, we study the impact of buy-options and the corresponding buy-price on revenues and bidding behavior in (online) proxy-auctions with independent private valuations. We show that temporary buy-options may reduce revenues for two reasons: At low buy-prices, the application of the buy-option avoids revenue-enhancing bidding; at high buy-prices, bidders are reluctant to bid above the option price (even though the option is no longer available once an auction has started). The latter suggests a particular type of anchoring, where bidders use the buy-price to update their expectations about the strengths of their opponents.

show abstract

Section: Hypothesismentioning

confidence: 99%

The Impact of the Irrelevant: Temporary Buy-Options and Bidding Behavior in Auctions

Peeters

Strobel

Vermeulen

et al. 2016

Games

View full text Add to dashboard Cite

show abstract

“…Reynolds and Wooders [23] show that a BIN price is offered in roughly 40 percent of the eBay auctions they have studied. Therefore, in our analysis, an active eBay bidder has an option to execute the BIN price instead of waiting until the end of an auction.…”

Section: Variables Used In Empirical Analysismentioning

confidence: 99%

“…In our analysis, we combine the forwardlooking bidder behavior as in Zeithammer [26], with the buyers having perfect memory as in 4 See [3], [16], and [22] for a comprehensive summary of recent research in economics and information systems. 5 Some of the papers studying static online auctions include Budish and Takeyama [6], Roth and Ockenfels [24], Bajari and Hortacsu [2], Ockenfels and Roth [20], Reynolds and Wooders [23]. 6 Last-minute bidding is when bidders wait until the very end of the auction to submit their bids and the Buy-ItNow option gives sellers the opportunity to provide bidders with the possibility of buying the item forthwith by paying the BIN price before serious bidding starts in an auction.…”

Section: Introductionmentioning

confidence: 99%

Bidding behavior in dynamic auction settings: An empirical analysis of eBay

Onur

2010

Electronic Commerce Research and Applications

View full text Add to dashboard Cite

“…Campbell and Levin (2002) also examine the issue of when or when not to use an auction format for selling. Reynolds and Wooders (2003) present a model in which the 'Buy it Now' auction hybrid formats offered by eBay and Yahoo are revenue equivalent to ascending bid auctions if bidders are risk neutral but can raise seller revenue in the presence of bidder risk aversion. Budish and Takeyama (2001) arrive at the same conclusions independently.…”

Section: Research On Market Institutionsmentioning

confidence: 99%

Buy it Now: A Hybrid Internet Market Institution

et al. 2004

View full text Add to dashboard Cite

This paper analyzes seller choices and outcomes in approximately 700 recent Internet auctions on eBay. The 'Buy it Now' option that is available in these auctions allows the seller to supplement or replace the auction with a posted price offer. We use a structural model to control for the endogenous conduct of the auction (e.g., number of bids and bidders) as well as product and seller characteristics. Among other results, we find that the 'Buy it Now' option was used more often by sellers with higher ratings (awarded by previous buyers) and sellers offering fewer units; and that posted prices were more prevalent for used items. Sellers obtained higher prices for unused and undamaged items overall, and especially when selling at the 'Buy it Now' price. * Acknowledgement. This research has received generous financial support from the UCSC Division of Social Sciences. We are grateful to David Reiley for lending his web crawler PERL script, and to Dan Levin for pointers to the theoretical literature. +University

show abstract

Auctions with a Buy Price

Cited by 57 publications

References 28 publications

The Impact of the Irrelevant: Temporary Buy-Options and Bidding Behavior in Auctions

The Impact of the Irrelevant: Temporary Buy-Options and Bidding Behavior in Auctions

Bidding behavior in dynamic auction settings: An empirical analysis of eBay

Buy it Now: A Hybrid Internet Market Institution

Contact Info

Product

Resources

About