Buy-price option in auctions changes bidding behavior, attracting more consumers.
The article explores auctions where bidders can choose to buy a product at a set price. In these auctions, the buy-price option affects how bidders bid: middle-value bidders bid more aggressively, while high-value bidders bid less. The buy-price in the second-price auction is higher than in the first-price auction. All-pay auctions with buy-price don't make more profit than fixed-price selling with a set number of buyers. But with more buyers entering, they can attract more customers and make more profit.