Auctions with a buy price: The case of reference-dependent preferences

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Auctions with Buyer Preferences

Auctions and exchanges are one of the most important market mechanisms for price determination and allocation of goods. In this paper we consider the case when each buyer has a limited budget and wishes to buy at most one item in multi-item auctions. We show the limitations of two known mechanisms { sequence of single-item auctions and recently introduced XOR double auctions { and introduce a n...

Posted price selling and online auctions

a r t i c l e i n f o a b s t r a c t JEL classification: C70 D44 D61 Keywords: Online auctions Posted price selling Buy-it-now Allocative inefficiency Random matching eBay auctions In an auction-style listing at eBay, sellers have the option to set a posted price (also known as buy-it-now price), which allows buyers to instantly purchase an item before the start of the auction. This paper prov...

When Auction Meets Fixed Price: A Theoretical and Empirical Examination of Buy-it-Now Auctions

Recently fixed pricing and auctions have been brought together in a new pricing format that offers bidders the option of prematurely ending an auction at a fixed price. The growing popularity of auctions presents an interesting pricing decision for managers: whether to sell at a fixed price, in a regular auction, or through a buy-it-now auction. This paper studies eBay’s buy-it-now auction and ...

Auctions with a Buy Price ∗

Internet auctions on eBay and Yahoo allow sellers to list their auctions with a “buy-now” option. In such auctions the seller sets a buy price at which a bidder may purchase the item immediately and end the auction. In the eBay version of a buy-now auction, the buy-now option disappears as soon as a bid is placed, while in the Yahoo version of the auction the buy-now option remains in effect th...