Reputation Matters: How Seller Honesty Impacts Auction Efficiency and Revenue
The article explores how sellers with different reputations run auctions for similar items at the same time. They look at how buyers decide which auction to bid in, based on the quality of the item and the seller's reputation. The study finds that in these auctions, sellers with better reputations tend to make more money. When buyers can bid in multiple auctions, things get more complicated and less efficient.