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A support system for predicting eBay end prices

Author

Listed:
  • van Heijst, D.P.
  • Potharst, R.
  • van Wezel, M.C.

Abstract

In this report a support system for predicting end prices on eBay is proposed. The end price predictions are based on the item descriptions found in the item listings of eBay, and on some numerical item features. The system uses text mining and boosting algorithms from the field of machine learning. Our system substantially outperforms the naive method of predicting the category mean price. Moreover, interpretation of the model enables us to identify influential terms in the item descriptions and shows that the item description is more influential than the seller feedback rating, which was shown to be influential in earlier studies.

Suggested Citation

  • van Heijst, D.P. & Potharst, R. & van Wezel, M.C., 2006. "A support system for predicting eBay end prices," Econometric Institute Research Papers EI 2006-27, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:8189
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    References listed on IDEAS

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    1. Patrick Bajari & Ali Hortaçsu, 2004. "Economic Insights from Internet Auctions," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 457-486, June.
    2. Alvin E. Roth & Axel Ockenfels, 2002. "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," American Economic Review, American Economic Association, vol. 92(4), pages 1093-1103, September.
    3. Paul Resnick & Richard Zeckhauser & John Swanson & Kate Lockwood, 2006. "The value of reputation on eBay: A controlled experiment," Experimental Economics, Springer;Economic Science Association, vol. 9(2), pages 79-101, June.
    4. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
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