Auction sellers' competitive reserve prices shape bidding wars and selling prices!
The article explores how competition among sellers in online auctions affects the setting of reserve prices and influences auction outcomes. By analyzing data from eBay auctions, the researchers found that sellers adjust their reserve prices based on their competitors' strategies. More competition leads to lower open reserves and fewer secret reserves. Bidders are also influenced by competitive reserve prices, affecting their participation and the final selling prices. This study sheds light on the importance of sellers adapting their strategies based on competitors and offers insights for bidders on auction selection.