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Simultaneous use of auctions and posted prices

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  • Hummel, Patrick

Abstract

I consider a model in which several identical objects are sold simultaneously via an auction and a posted price mechanism. The model explains several empirical regularities regarding bidding behavior in eBay auctions such as the finding that some bidders bid multiple times over the course of the auction, and that bidders tend to bid with greater frequency near the end of the auction than the beginning. I also show that sellers prefer to simultaneously use auctions and posted prices than to use either mechanism individually.

Suggested Citation

  • Hummel, Patrick, 2015. "Simultaneous use of auctions and posted prices," European Economic Review, Elsevier, vol. 78(C), pages 269-284.
    • Handle: RePEc:eee:eecrev:v:78:y:2015:i:c:p:269-284
    DOI: 10.1016/j.euroecorev.2015.06.006
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    References listed on IDEAS

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    Cited by:

    1. Alexander Maslov, 2020. "A Note on Buyers’ Behavior in Auctions with an Outside Option," Games, MDPI, vol. 11(3), pages 1-9, July.
    2. Caio Waisman, 2021. "Selling mechanisms for perishable goods: An empirical analysis of an online resale market for event tickets," Quantitative Marketing and Economics (QME), Springer, vol. 19(2), pages 127-178, June.
    3. Freeman, David J. & Kimbrough, Erik O. & Reiss, J. Philipp, 2020. "Opportunity cost, inattention and the bidder’s curse," European Economic Review, Elsevier, vol. 129(C).
    4. Alexander Maslov, 2023. "Auctions versus posted prices in the revenue management of limited inventory," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1476-1490, April.
    5. Alexander Maslov, 2022. "Competition in online markets with auctions and posted prices," Journal of Economics, Springer, vol. 137(2), pages 145-169, October.
    6. Patrick Hummel, 2018. "How do selling mechanisms affect profits, surplus, capacity and prices with unknown demand?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(1), pages 94-126, February.

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    More about this item

    Keywords

    Auctions; Posted prices;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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