New sales method boosts profits in housing markets, outperforms traditional auctions.
The article explores a sales method where sellers publicly announce an asking price instead of a hidden reserve price. They find that setting an asking price above their minimum value can lead to better outcomes than traditional auctions. Additionally, when the asking price reveals information about the seller's minimum value, it can lead to a situation where prices fully disclose this information, resulting in similar revenue to standard auctions with reserve prices.