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The Seller's Listing Strategy in Online Auctions: Evidence from Ebay

45 Pages Posted: 14 Feb 2012 Last revised: 30 Nov 2017

Kong-Pin Chen

Academia Sinica - Research Center for Humanities and Social Sciences; National Taiwan University - Department of Economics

Hung-pin Lai

National Chung Cheng University - Department of Economics

Ya-Ting Yu

Graduate Institute of Industrial Economics

Date Written: September 21, 2017

Abstract

This paper studies the seller’s online listing strategy and its consequences. By focusing on the fixed-price posting, buy-it-now auction and regular auction, we empirically investigate how the sellers choose the listing format and its associated strategic instruments to better understand their strategic behavior. An empirical model that addresses plausible concerns about sample selection bias and endogeneity is constructed to capture a seller’s strategic behavior and examine how auction outcomes are related to this behavior. Based on the estimated model, we then conduct a counterfactual analysis. We find a tradeoff between the expected revenue and sale duration for the three listing formats.

Keywords: online auction, listing strategy, auction outcome, endogeneity, special regressor, counterfactual analysis, time preference, eBay

JEL Classification: D44

Suggested Citation

Chen, Kong-Pin and Lai, Hung-pin and Yu, Ya-Ting, The Seller's Listing Strategy in Online Auctions: Evidence from Ebay (September 21, 2017). Available at SSRN: https://ssrn.com/abstract=2004814 or http://dx.doi.org/10.2139/ssrn.2004814

Kong-Pin Chen (Contact Author)

Academia Sinica - Research Center for Humanities and Social Sciences ( email )

RCHSS
Academia Sinica
Nankang, Taipei, 11529
Taiwan
886 2 2789 8160 (Phone)
886 2 2785 4160 (Fax)

HOME PAGE: http://idv.sinica.edu.tw/kongpin/

National Taiwan University - Department of Economics

21 Hsiu Chow Rd
Taipei, 10020
Taiwan

Hung-pin Lai

National Chung Cheng University - Department of Economics ( email )

Ming-Hsiung, Chia-Yi, 621
Taiwan
886-5-2720411 ext 34110 (Phone)
886-5-2720816 (Fax)

HOME PAGE: http://www.ccunix.ccu.edu.tw/~ecdhpl/

Ya-Ting Yu

Graduate Institute of Industrial Economics ( email )

No. 300, Zhongda Road
Chung-Li Taiwan, 32054
Taiwan

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