Seller strategies on eBay: Does size matter?
by Steven T. Anderson, Daniel Friedman, Garrett Milam, Nirvikar Singh
International Journal of Electronic Business (IJEB), Vol. 5, No. 6, 2007

Abstract: We examine seller tactics in 1177 eBay auctions. The largest volume sellers make rather homogeneous choices; smaller sellers are more heterogeneous. Some tactics, such as starting the auction with a 'Buy it Now' offer, appear to increase revenue. Perhaps due to intense competition, however, the overall impact of most tactics appears to be quite small. The main exception is the use of a secret reserve price, which raises the winning bid conditional on a sale, but reduces the probability of a sale. This can be advantageous, depending on the seller's risk aversion and impatience.

Online publication date: Sun, 30-Dec-2007

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