Listing Fees and Their Role on eBay: Evidence from a Natural ExperimentJournal of Internet Commerce (2011)
AbstractSuccess of an online auction Web site is due to its appeal to bidders. Without bidders there would be no transactions. In a rising price auction, a higher opening price can act as a deterrent to bidder entry. The auctioneer can induce lower opening prices through a rising with respect to the opening prices insertion fee scheme. This will, in turn, increase bidder participation and, thus, increase the probability of an auction resulting in a sale. This work examines the impact the insertion fees have on the seller and buyer behavior on eBay using data generated by a natural experiment observed on eBay. The results demonstrate that the rising insertion fee structure of eBay induces sellers to lower their opening prices, which in turn, increases the bidding activity.
Publication DateNovember, 2011
Citation InformationMikhail I. Melnik. "Listing Fees and Their Role on eBay: Evidence from a Natural Experiment" Journal of Internet Commerce Vol. 10 Iss. 4 (2011)
Available at: http://works.bepress.com/mikhail_melnik/12/