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Online auction related articles

December 10, 2012 Leave a comment Go to comments

Relationship between starting price and auction outcome

Ariely and Simonsohn (2003), Haubl and Popkowski Leszczyc(2003) – find positive effect
Kamins, Dreze and Folkes (2004), Ku, Galinsky, Murnighan(2005), simonsohn and Ariely(2008) — find negative effect
Lucking-Reley, Prasad, and Reeves (2007) — find no effect

Nonrational herding (Simonsohn and Ariely 2008) – bidders favor auctions with more bids despite these extra bids arising from low starting price and not higher unobserved quality
Irrational Limited attention(Malmendier and Lee 2011) Bidders ignore conspicuous fixed-price options
Einav, Kuchler, Levin, and Sundaresan (2012) – Starting-price test assumes competing identical auctions/items except for different starting prices. In practice, this starting-price variation is hard to find.

Riley and Samuelson(1981), Virag(2010),  Adams (2010) -Potential problem if sellers set starting price as function of demand

Another approach in empirical field literature:Compare auction ending price to contemporaneous fixed prices
Malmendier and Lee(2011) – compare eBay auction prices to contemporaneous eBay BIN prices
Jones(2011) – compares eBay auction prices for amazon.com gift cards to face value of gift cards.

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