Decision Sciences
4 years ago

Online auctions losing popularity as sellers shift to fixed prices.

RePEc: Research Papers in Economics
Sales Mechanisms in Online Markets: What Happened to Internet Auctions?
Liran Einav, Chiara Farronato, Jonathan Levin, Neel Sundaresan

Paper Summary

Online auctions used to be popular, but now most sellers use fixed prices. Data from eBay shows that sellers make less money with auctions. A model suggests that buyers prefer fixed prices over auctions. Some sellers still use auctions, but the trend is towards fixed prices.

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