Lee, Young Han; Malmendier, Ulrike - 2007
, the final price is higher than the simultaneous fixed price. The result is not explained by differences in item quality … bidders ever bid above the fixed price. The finding replicates in a broad cross-section of auctions (48 percent overbidding …). Using a simple model of second-price auctions with a fixed price option, we show that transaction costs of switching between …
