Seller Strategies on Ebay

UC Santa Cruz Economics Working Paper No. 564

27 Pages Posted: 17 Apr 2004

See all articles by Steven T. Anderson

Steven T. Anderson

Government of the United States of America - International Minerals Section; University of California, Santa Cruz

Daniel Friedman

University of California, Santa Cruz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Garrett H. Milam

Ryerson University - Economics and Management Science

Nirvikar Singh

University of California, Santa Cruz

Date Written: April 2004

Abstract

This paper analyzes seller characteristics and choices in approximately 1000 eBay auctions for a particular model of PDA. Seller characteristics include frequency of selling, reputation, and the qualities of the product sold. Seller choices include the length of the auction, information provided about the product, starting price, and whether to use a 'Buy it Now' option. We find that different types of sellers pursue systematically different strategies for how their items are offered, and we discuss the possible causes of these differences. For example, the two high volume sellers in our sample always use a combination of a 'Buy it Now' with a low starting price, while the many less frequent sellers use an array of pricing strategies. In addition, more highly rated sellers were somewhat more likely to provide more detailed product information, as well as secure payment options.

Suggested Citation

Anderson, Steven Todd and Friedman, Daniel and Milam, Garrett H. and Singh, Nirvikar, Seller Strategies on Ebay (April 2004). UC Santa Cruz Economics Working Paper No. 564, Available at SSRN: https://ssrn.com/abstract=531702 or http://dx.doi.org/10.2139/ssrn.531702

Steven Todd Anderson

Government of the United States of America - International Minerals Section ( email )

991 National Center
12201 Sunrise Valley Drive
Reston, VA 20192
United States
(703) 648-7744 (Phone)
(703) 648-7737 (Fax)

University of California, Santa Cruz ( email )

Economics Department
Santa Cruz, CA 95064
United States

Daniel Friedman

University of California, Santa Cruz - Department of Economics ( email )

Social Sciences I
Santa Cruz, CA 95064
United States
831-459-4981 (Phone)
831-459-5900 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Garrett H. Milam

Ryerson University - Economics and Management Science ( email )

350 Victoria Street
Toronto, Ontario M5B 2K3
Canada

Nirvikar Singh (Contact Author)

University of California, Santa Cruz ( email )

Department of Economics
E2 Building
Santa Cruz, CA 95064
United States
831-459-4093 (Phone)
831-459-5077 (Fax)

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