Decision Sciences
4 years ago

Online auctions with 'Buy it Now' option lead to higher winning bids

1 view
Journal of electronic commerce research
Buy It Now: A Hybrid Internet Market Institution
Steven T. Anderson, Garrett Milam, Daniel Friedman, Nirvikar Singh

Paper Summary

The article analyzes how sellers use the 'Buy it Now' option in Internet auctions. Sellers with higher ratings and fewer units tend to use this option more. Auctions with a 'Buy it Now' price tend to have higher winning bids. Posting prices, combining 'Buy it Now' and a starting price, is an effective strategy for sellers. Internet auctions and posted prices are both popular in online markets.

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