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- W2129332221 abstract "With $40BB in annual gross merchandise volume, electronic auctions comprise a substantial and growing sector of the retail economy. Using unique data on Celtic coins, we estimate a structural model of buyer and seller behavior via MCMC with data augmentation. Results indicate that buyer valuations are affected by item, seller, and auction characteristics; buyer costs are impacted by bidding behavior; and seller costs are affected by item characteristics and the number of listings.The model enables us to compute fee elasticities even though there exists no variation in fees in our data. We find commission elasticities exceed per-item fee elasticities because they target high value sellers and enhance their listing likelihood. By targeting commission reductions to high value sellers auction house revenues can be increased by 3.9%. Computing customer value, we find attrition of the largest seller would decrease fees paid to the auction house by $97. Given the seller paid $127 in fees, competitive effects offset only 24% of the fees paid by the seller. In contrast, competition offsets 81% of the buyer attrition effect. In both events, the auction house would overvalue its customers by neglecting competitive effects." @default.
- W2129332221 created "2016-06-24" @default.
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- W2129332221 date "2008-01-01" @default.
- W2129332221 modified "2023-09-23" @default.
- W2129332221 title "Online Auction Demand" @default.
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