Consumer bidding is common in a wide variety of markets. An important source of friction in many markets with bidding is the cost of participation. We investigate the impact of participation costs on bidder entry and bidding behavior using incentive-compatible laboratory experiments with...

The application of Internet–based virtual stock markets (VSMs) is an additional approach that can be used to predict short– and medium–term market developments. The basic concept involves bringing a group of participants together via the Internet and allowing them to trade shares of...

Name-your-own-price is a pricing mechanism where the buyer instead of the seller determines the price, because the buyer makes a bid at a certain price, which the seller can either accept or reject. Based on consumers' bidding behavior at a name-your-own-price seller, we develop and empirically...

The use of prediction markets (PMs) for forecasting is emerging in many fields because of its excellent forecasting accuracy. However, PM accuracy depends on its market design, including the choice of market mechanism. Standard financial market mechanisms are not well suited for small, usually...

An attractive feature of Prediction Markets (PMs) is that they provide economic incentives for informants to share unique information. It is unclear whether PMs are appropriate for applications with few knowledgeable informants as is the case for most institutional forecasting tasks. Hence, we...

Advances in information technology have led to a substantial increase in the use of interactive pricing mechanisms, where buyers (i.e., consumers) and sellers (i.e., retailers) enter a formal computer-mediated price-negotiation process during which consumers submit bids for a specific product....