Understanding Preferences for Bidding or Buying

42 Pages Posted: 16 Nov 2021 Last revised: 28 Jan 2022

See all articles by Joyce Delnoij

Joyce Delnoij

Wageningen University & Research - Section Economics

K. De Jaegher

Utrecht University - School of Economics

Stephanie Rosenkranz

Utrecht University - School of Economics

Abstract

This paper analyzes consumers' choices between, as well as behavior within three selling mechanisms which are frequently used in online marketplaces: posted prices, ascending auctions and Buy-It-Now auctions. In an exploratory experiment, where subjects choose between one mechanism and an alternative mechanism, we find that subjects use a cut-off strategy based on values and prices in their choices. While we do not find a systematic effect of behavioral factors, we do find strong evidence for the existence of gender differences: females are more likely to choose a mechanism involving buying, and also seem to use a more explicit cut-off strategy.

Keywords: Consumer preferences, Posted price, Ascending auction, Buy-It-Now auction, Experiment

Suggested Citation

Delnoij, Joyce and De Jaegher, K. and Rosenkranz, Stephanie, Understanding Preferences for Bidding or Buying. Available at SSRN: https://ssrn.com/abstract=3957378

Joyce Delnoij (Contact Author)

Wageningen University & Research - Section Economics ( email )

P.O. Box 8130, 6700 EW Wageningen
Netherlands

K. De Jaegher

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Stephanie Rosenkranz

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands
+31 30 253 9806 (Phone)
+31 30 253 7373 (Fax)

HOME PAGE: http://www.uu.nl/uupublish/defaculteit/persoonlijkepagi/rosenkranz/

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