Price Dispersion in Internet Auctions of Homogeneous Goods
نویسندگان
چکیده
منابع مشابه
A Theory of Bidding Dynamics and Deadlines in Online Retail∗
We present an equilibrium search model that parsimoniously rationalizes the use of auctions as a sales mechanism for new-in-box goods—a frequent occurrence in online retail markets—and analyze whether the existence of these auctions is welfare enhancing relative to a market consisting only of posted prices. Buyers have a deadline by which the good must be purchased, and sellers choose between a...
متن کاملThe Road More Travelled: Web Traffic and Price Competition in Internet Retailing
The Internet is perceived to increase market efficiency, and thus reduce price dispersion. Yet the empirical evidence to support this proposition is mixed. Internet retailers of homogeneous products may choose to actively differentiate their stores and offerings in order to avoid competing just on price. We explore how differentiation among these retailers affects pricing and web traffic. We pr...
متن کاملThe Effects of Auction Parameters on Price Dispersion and Bidder Entry on eBay: A Conditional Logit Analysis
This paper studies price dispersion and bidder entry in sequential online auctions of indistinguishable items, where goods and shipping costs are identical. Contrary to intuition and the “law of one price,” previous empirical analyses show large price swings among auctions of identical products. To study this phenomenon, this paper performs empirical analysis on a dataset of 3,164 sequential eB...
متن کاملBidding Behavior and Price Formation with competing Auctions: Evidence from eBay
Existing literatures consider on-line auctions as many independently running auctions and each bidder chooses only one auction. However, many substitutable goods are auctioned at the same time and bidders can bid several auctions at the same time. We examine a data set of eBay Pentium III 800 MHz CPU auctions to explore the bidding behavior and price formation for competing auctions. We also us...
متن کاملAuctions of Homogeneous Goods with Increasing Returns: Experimental Comparison of Alternative "Dutch" Auctions
M business-to-business (B2B) auctions are used to transact large quantities of homogeneous goods, and therefore use multiunit mechanisms. In the B2B context, bidders often have increasing returns to scale, or synergies. We compare two commonly used auction formats for selling multiple homogeneous objects, both sometimes called “Dutch” auctions, in a set of value environments that include synerg...
متن کامل