We describe firm pricing when consumers search passively and follow simple reservation price rules. In stark contrast … to other models in the literature, this approach yields equilibrium price dispersion in pure strategies even when firms … have the same marginal costs. In equilibrium, lower price firms earn higher profits. The range of price dispersion …

opportunity to accept a posted price offer from the seller before the start of the auction. Bringing the field into the lab, we …

In Buy-It-Now (BIN, hereafter) auctions, sellers can make a "take-it-or-leave-it" price offer (BIN price) prior to an … to auction prices substantially below those expected in second-price auctions. Our results reveal that the observed price … deviations are not an artefact due to the existence of the BIN price, rather a consequence of the specific features of the eBay …

This paper considers three hypotheses about the strategic origin of price dispersion in homogeneous product online … median. However, the shape of the observed price distributions is not explained well by any of the models. These results pose …

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 bidding behavior correlates with the observed price deviation. Sellers … does not effect their price decisions. Compared to an eBay auction without a BIN-price, the BIN-auction is more efficient …