Second - chance offers
نویسندگان
چکیده
We study the second-price offer feature of eBay auctions in which the seller has multiple units. Perhaps surprisingly, the opportunity to make second-chance offers can reduce seller profit. This happens if her marginal cost function is sufficiently steep. Hence, sellers should be wary about the possibility that buyers anticipate second-chance offers, and it may be advantageous for a seller to acquire a reputation for not making second-chance offers. (JEL D44, D82)
منابع مشابه
Extended Abstract for Second-Chance Offers
eBay has become one of the most important market places for retail goods worldwide. Yet important aspects of the strategic bidding incentives in eBay auctions remain unexplored. eBay’s main sales mechanism is closely related to a second-price auction, which has been extensively studied. There are, however important difference to a standard second-price auction. In particular, the eBay auction a...
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