In Buy-It-Now (BIN, hereafter) auctions, sellers can make a "take-it-or-leave-it" price offer (BIN price) prior to an auction. We analyse experimentally how eBay sellers set BIN prices and whether they benefit from offering them. Using the real eBay environment in the laboratory, we find that...

We investigate experimentally on eBay how sellers set prices in "Buy-It-Now" (BIN) auctions. We find that the eBay format leads to prices substantially below those expected in second-price auctions. Moreover, our results reveal that the information available on eBay about buyer experience and...

Internet auctions have become very important for B-2-C E-Commerce. With 56 million active users, eBay alone generates a 34 billion in turnover per annum [Ebay05, 2]. Typically, forward auctions with an ascending- bid mechanism are employed in B-2-C or C-2-C environments. Sellers initiate...