When auction meets fixed price: A theoretical and empirical examination of buy-it-now auctions

Quantitative Marketing and Economics

Volumn 6, Issue 4, 2008, Pages 339-370

  Wang, Xin ^a   Montgomery, Alan ^b   Srinivasan, Kannan ^b  

^a BRANDEIS UNIVERSITY   (United States)

^b CARNEGIE MELLON UNIVERSITY   (United States)

Author keywords

Auctions; Game theory; Pricing research

Indexed keywords

EID: 53149135002     PISSN: 15707156     EISSN: 1573711X     Source Type: Journal    
DOI: 10.1007/s11129-008-9041-0     Document Type: Article

References (28)

1. Bajari, P., & Hortascu, A. (2003). The winner's curse, reserve prices, and endogenous entry: Empirical insights from eBay auctions. The Rand Journal of Economics, 34 (2), 329-355. doi: 10.2307/1593721.
2. Budish, E., & Takeyama, L. (2001). Buy prices in online auctions: Irrationality on the internet? Economics Letters, 72, 325-333. doi: 10.1016/S0165-1765(01)00438-4.
3. Chakravarti, D., Greenleaf, E., Sinha, A., Cheema, A., Cox, J., Friedman, D., et al. (2002). Auctions: Research opportunities in marketing. Marketing Letters, 13 (3), 281-296. doi: 10.1023/ A:1020399513113.
4. Chan, T. Y., Kadiyali, V., & Park, Y.-H. (2006). The exercise of buy-it-now pricing in auctions: Seller revenue implications. Working Paper, Johnson Graduate School of Management, Cornell University.
5. Ebay Inc. (2003). Ebay Inc. announces fourth quarter and full year 2003 financial results. http://investor.ebay.com/financial_releases.cfm.
6. Green, J., & Laffont, J.-J. (1984). Participation constraints in the Vickrey auction. Economics Letters, 16, 31-36. doi: 10.1016/ 0165-1765(84)90138-1.
7. Hidvégi, Z., Wang, W., & Whinston, A. (2006). Buy-price English auction. Journal of Economic Theory, 129, 31-56. doi: 10.1016/ j.jet.2004.11.009.
8. Johnson, E. J., Bellman, S., & Lohse, G. L. (2003). Cognitive lock-in and the power law of practice. Journal of Marketing, 67 (2), 62-75. doi: 10.1509/jmkg.67.2.62.18615.
9. Katkar, R., & Lucking-Reiley, D. (2001). Public versus secret reserve prices in eBay auctions: Results of a Pokemon field experiment. NBER Working Papers, 8183. Cambridge: National Bureau of Economic Research, Inc.
10. Kirkegaard, R., & Overgaard, P. B. (2007). Buy-out prices in auctions: Seller competition and multi-unit demand. Working Paper, Department of Economics, Brock University.
11. List, J., & Lucking-Reiley, D. (2002). Bidding Behavior and Decision Costs in Field Experiments Economic Inquiry, 40 (44), 611-619.
12. Mathews, T. (2004). The impact of discounting on an auction with a buyout option: A theoretical analysis motivated by eBay's buy-it-now feature. Journal of Economics Zeitschrift fur Nationalokonomie, 81 (1), 25-52.
13. Mehta, N., Rajiv, S., & Srinivasan, K. (2003). Price uncertainty and consumer search: A structural model of consideration set formation. Marketing Science, 22 (1), 58-84. doi: 10.1287/mksc.22.1.58.12849.
14. Menezes, F., & Monteiro, P. K. (2000). Auctions with endogenous participation. Review of Economic Design, 5 (1), 71-89. doi: 10.1007/ s100580050048.
15. Milgrom, P., & Weber, R. (1982). A theory of auctions and competitive bidding. Econometrica, 50, 1089-1122. doi: 10.2307/1911865.
16. Park, Y.-H., & Bradlow, E. (2005). An integrated model for bidding behavior in internet auctions: Whether, who, when, and how much. JMR, Journal of Marketing Research, 42, 470-482 (November) doi: 10.1509/ jmkr.2005.42.4.470.
17. Pinker, E., Seidmann, A., & Vakrat, Y. (2003). Managing online auctions: Current business and research issues. Management Science, 49 (11), 1457-1484. doi: 10.1287/mnsc.49.11.1457.20584.
18. Qiu, C. P. T. L., Leszczyc, P., & He, Y. (2005). The signal effect of buy-now price in internet auctions. In F. Pons (Ed.), Proceedings of the Annual Conference of the Administrative Sciences Association of Canada, vol. 26, no. 3.
19. Ratchford, B. (1982). Cost-benefit models for explaining consumer choice and information seeking behavior. Management Science, 28 (2), 197-212.
20. Riley, J., & Samuelson, W. (1981). Optimal auctions. The American Economic Review, 71 (3), 381-392.
21. Roth, A., & Ockenfels, A. (2002). Last-minute bidding and the rules for ending second-price auctions: Evidence from eBay and Amazon auctions on the internet. The American Economic Review, 92 (4), 1093-1103. doi: 10.1257/00028280260344632.
22. Samuelson, W. (1985). Competitive bidding with entry costs. Economics Letters, 17, 53-57. doi: 10.1016/0165-1765(85)90126-0.
23. Vickrey, W. (1961). Counter speculation and competitive sealed tenders. The Journal of Finance, 16 (1), 8-37. doi: 10.2307/2977633.
24. Wang, R. (1993). Auctions versus posted-price selling. The American Economic Review, 83 (4), 838-851.
25. Wilcox, R. (2000). Experts and amateurs: The role of experience in internet auctions. Marketing Letters, 11 (4), 363-374. doi: 10.1023/ A:1008141313927.
26. ZDNet (2002). Ebay to raise fees. January 18.
27. Zeithammer, R. (2006). Forward-looking bidding in online auctions. JMR, Journal of Marketing Research, 43 (3), 462-476. doi: 10.1509/ jmkr.43.3.462.
28. Zeithammer, R., & Liu, P. (2006). When is auctioning preferred to posting a fixed selling price? Working Paper, Graduate School of Business, University of Chicago.