Buy it Now: A Hybrid Internet Market Institution

Anderson, Steven T.; Friedman, Daniel; Milam, Garrett; Singh, Nirvikar

doi:10.2139/ssrn.533182

Cited by 36 publications

(32 citation statements)

References 33 publications

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“…Before this recent inclusive change, many sellers were able to enter an auction with a BiN option and set the first bid so high that bidders could essentially only buy at the fixed price. Anderson et al (2004) noted that 40% of the auctions in their study with a BiN option were actually using this way to sell at a fixed price. Of the 133 auctions that were not fixed-price sales, only one ended at the BiN price.…”

Section: Selling Formatmentioning

confidence: 99%

eBay in the Economic Literature: Analysis of an Auction Marketplace

Hasker

Sickles

2010

Rev Ind Organ

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This survey brings together theoretical and empirical questions that have been addressed in the economic literature on eBay, focusing on understanding the behavior of buyers and sellers. We discuss several puzzles of bidder behavior and the explanations that have been put forward by the literature for each. We then discuss structural estimates of bidder behavior and measuring the consumer surplus derived from eBay. We then try to understand why there are so many selling formats being used simultaneously, and then focus on the critical decision variables for a seller in an eBay English auction. Finally we analyze how trustworthy eBay sellers are on average, and whether the feedback system provides strong incentives for good behavior. © 2010 Springer Science+Business Media, LLC

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Section: Selling Formatmentioning

confidence: 99%

eBay in the Economic Literature: Analysis of an Auction Marketplace

Hasker

Sickles

2010

Rev Ind Organ

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“…Therefore, we are seeking explanations which depend not on product characteristics, 9 but rather on the seller's characteristics. This differentiates our study from Anderson et al (2008), who also consider how product characteristics affect choice of auction format. Finally, we consider the situation in which the sellers choose auction formats within the same venue.…”

mentioning

confidence: 93%

The seller's listing strategy in online auctions: Evidence from eBay

Chen

Lai

2018

International Journal of Industrial Organization

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The paper empirically studies why the sellers of identical commodities adopt different auction formats in the online auction, and the consequences thereof. We postulate that the sellers adopt different auction formats because of the differences in their experience and the number of items they have. We first use these two characteristics to endogeneize the seller's choice between three auction formats: fixed-price, buy-it-now (BIN), and pure auctions. We then estimate the differences in sales rate, transaction price, and sale duration between the three formats. We find that the fixed-price auction 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 tradeoff between price and sale probability in adopting different formats of auctions. * We thank Ching-I Huang and Jong-Rong Chen for their useful comments and suggestions.

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“…Although several studies have found that the BIN option has a positive effect on auction price (Anderson et al 2008;Budish and Takeyama 2001;Dodonova and Khoroshilov 2004;Reynolds and Wooders 2003), others have found otherwise (Standifird et al 2005). Studies that have found a positive effect typically have been conducted in markets with high quality uncertainty, whereas those that have found no effect have been conducted in markets with low quality uncertainty.…”

Section: Buy It Nowmentioning

confidence: 99%

Market structure and quality uncertainty: a theoretical framework for online auction research

Hou

Blodgett

2010

Electron Markets

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Given large numbers of buyers and sellers, with access to a wide variety of information, economic theory suggests that online auction markets should provide an efficient mechanism for establishing equilibrium prices. Previous research on online auction prices, however, is far from conclusive, having produced mixed findings. The seemingly inconsistent and sometimes contradictory results make it very difficult to integrate empirical findings into a coherent body of knowledge. The purpose of this paper is to present a framework that can reconcile previous findings and provide direction for future research. Accordingly, we propose a simple theoretical framework with two dimensions-market structure (thick vs. thin) and quality uncertainty (high vs. low). By examining the literature in the context of market structure and quality uncertainty we find that previous studies are not necessarily at odds, but that there is actually a fairly consistent pattern of results.

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Buy it Now: A Hybrid Internet Market Institution

Cited by 36 publications

References 33 publications

eBay in the Economic Literature: Analysis of an Auction Marketplace

eBay in the Economic Literature: Analysis of an Auction Marketplace

The seller's listing strategy in online auctions: Evidence from eBay

Market structure and quality uncertainty: a theoretical framework for online auction research

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