The fixed price offer mechanism in <italic>Trade Me</italic> online auctions
The fixed-price-offer (FPO) mechanism in <italic>Trade Me</italic> auctions allows sellers to make a take-it-or-leave-it offer at the conclusion of an unsuccessful auction. Weinvestigate the effects of the FPO option on strategies and outcomes in independent-value auctions. The FPO option induces some bidders with a value above the seller's reserve to wait for an FPO instead of bidding. Overall, the FPO option increases the probability of sale but reduces expected seller revenue compared with a standard auction. The impact of the FPO option is reduced when the number of bidders increases.
Year of publication: |
2011
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Authors: | Hogan, Seamus ; Kidd, Hamish ; Meriluoto, Laura ; Smith, Andrew |
Published in: |
New Zealand Economic Papers. - Taylor & Francis Journals, ISSN 0077-9954. - Vol. 45.2011, 3, p. 255-271
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Publisher: |
Taylor & Francis Journals |
Saved in:
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