We use a simulation to study the profitability of selling consumer goods online using posted price and auction simultaneously. We consider the open ascending-bid auction mechanism and develop a model of consumers' behavior when faced with the choice between the two channels. With the simulation...

The Internet enables sellers to offer products through multiple channels simultaneously. In particular, many sellers utilize online auctions in parallel to other online and offline channels. Using an analytical model and data from eBay Motors, we study seller behavior and auction outcomes in the...