IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2412.20285.html
   My bibliography  Save this paper

Consumption Periods in Advance Selling Auctions: Evidence from US Timber Market

Author

Listed:
  • Shosuke Noguchi
  • Suguru Otani

Abstract

This study investigates products sold before consumption and examines how the duration of the consumption periods and the choice of selling mechanism influence sellers' revenue. Using empirical data from timber auctions, we identify buyers' tendency to delay consumption to resolve payoff uncertainty and reveal heterogeneous motivations among buyers. Through structural estimation, we uncover key parameters for each buyer type, including sensitivity to realized payoffs and consumption-related costs. Leveraging these estimates, we perform counterfactual analyses to propose revenue-enhancing consumption periods and selling mechanisms. Our findings suggest that extending the consumption periods is likely to increase revenue, with the magnitude depending on the selling mechanism, the composition of buyer types, and the number of interested buyers.

Suggested Citation

  • Shosuke Noguchi & Suguru Otani, 2024. "Consumption Periods in Advance Selling Auctions: Evidence from US Timber Market," Papers 2412.20285, arXiv.org.
    • Handle: RePEc:arx:papers:2412.20285
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2412.20285
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2412.20285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.