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Author: Audrey Hu
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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Book Description
Received auction theory prescribes that a reserve price which maximizes expected profit should be no less than the seller's own value for the auctioned object. In contrast, a common empirical observation is that many auctions have reserve prices set below sellers' values, even at zero. This paper revisits the theory to find a potential resolution of the puzzle for second-price auctions. The main result is that an optimal reserve price may be less than the seller's value if bidders are risk averse and have interdependent values. Moreover, the resulting outcome may be arbitrarily close to that of an auction that has no reserve price, an absolute auction.
Author: Audrey Hu
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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Book Description
Received auction theory prescribes that a reserve price which maximizes expected profit should be no less than the seller's own value for the auctioned object. In contrast, a common empirical observation is that many auctions have reserve prices set below sellers' values, even at zero. This paper revisits the theory to find a potential resolution of the puzzle for second-price auctions. The main result is that an optimal reserve price may be less than the seller's value if bidders are risk averse and have interdependent values. Moreover, the resulting outcome may be arbitrarily close to that of an auction that has no reserve price, an absolute auction.
Author: Allan Hernandez-Chanto
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We justify the prevalence of small reserve prices in real-life auctions in spite of empirical findings that suggest optimal reserve prices in those contexts should be higher. We reconcile such discrepancy within the standard paradigm of independent private valuations rather than exploring richer environments capable to rationalize the adoption of small reserve prices. The key driver of our characterization is the uncertainty on the distribution of valuations the seller faces. The uncertainty may arise when the bid sample lacks some variables to determine the valuation distribution or when its point estimate differs from the true distribution. We show that (i) the optimal reserve price under uncertainty decreases as the number of bidders grows; (ii) revenue gains from the optimal reserve price relative to any smaller reserve price disappear at an exponential rate. Finally, we show that when the seller is risk-averse or the amount of uncertainty in the distribution increases, the reserve price decreases further.
Author: Marsha Collier
Publisher: John Wiley & Sons
ISBN: 9780470527597
Category : Business & Economics
Languages : en
Pages : 384
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Book Description
Expert advice helps seniors find bargains and make money on eBay eBay is a great place to help seniors find bargains or supplement their income by selling items. This book offers the basics on buying or selling on eBay with confidence in a format that's ideal for the senior audience, including a larger print format than traditional For Dummies books. Author Marsha Collier is the undisputed authority on eBay. Her advice has helped millions of eBay users navigate the popular shopping and selling site. This book explains how to Get your computer ready to use eBay Go to the eBay site, sign up, and browse Spot good deals, buy items, and pay safely Set up your own sale Take pictures of your merchandise and get them online Receive payment and ship items Understand eBay's fees and rules eBay can be fun and profitable. This book makes it easy to get started!
Author: David Aaron Karp
Publisher: "O'Reilly Media, Inc."
ISBN: 9780596005641
Category : Business & Economics
Languages : en
Pages : 364
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Book Description
Presents a collection of tips and techniques for getting the most out of eBay.
Author: Daniel Quint
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
I show that the benefit of a high reserve price in a common-values ascending auction is lower than in the observationally equivalent private values setting. Put another way, when bidders have common values, empirical estimation based on a private-values model will overstate the value of a high reserve price. Via numerical examples, I show this same ranking typically applies to the level of the optimal reserve price as well, and often to the benefit of any reserve price, not just high ones. With common values, the optimal reserve can even be below the seller's valuation, which is impossible with private values.
Author: Paul Milgrom
Publisher: Cambridge University Press
ISBN: 1139449168
Category : Business & Economics
Languages : en
Pages : 378
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Book Description
This book provides a comprehensive introduction to modern auction theory and its important new applications. It is written by a leading economic theorist whose suggestions guided the creation of the new spectrum auction designs. Aimed at graduate students and professionals in economics, the book gives the most up-to-date treatments of both traditional theories of 'optimal auctions' and newer theories of multi-unit auctions and package auctions, and shows by example how these theories are used. The analysis explores the limitations of prominent older designs, such as the Vickrey auction design, and evaluates the practical responses to those limitations. It explores the tension between the traditional theory of auctions with a fixed set of bidders, in which the seller seeks to squeeze as much revenue as possible from the fixed set, and the theory of auctions with endogenous entry, in which bidder profits must be respected to encourage participation.
Author: Laura Fisher Kaiser
Publisher: Touchstone
ISBN: 9780684873725
Category : Antiques & Collectibles
Languages : en
Pages : 324
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Book Description
The official, authorized primer from the red hot Internet site that started it all--an indispensable guide for both online buyers and sellers. Radio drive-time tour.
Author: Rama Katkar
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 31
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Book Description
Sellers in eBay auctions have the opportunity to choose both a public minimum bid amount and a secret reserve price. We ask, empirically, whether the seller is made better or worse off by setting a secret reserve above a low minimum bid, versus the option of making the reserve public by using it as the minimum bid level. In a field experiment, we auction 50 matched pairs of Pokemon cards on eBay, half with secret reserves and half with equivalently high public minimum bids. We find that secret reserve prices make us worse off as sellers, by reducing the probability of the auction resulting in a sale, deterring serious bidders from entering the auction, and lowering the expected transaction price of the auction. We also present evidence that some sellers choose to use secret reserve prices for reasons other than increasing their expected auction prices
Author: Kenneth Steiglitz
Publisher: Princeton University Press
ISBN: 9780691127132
Category : Business & Economics
Languages : en
Pages : 316
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Book Description
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Author: David Easley
Publisher: Cambridge University Press
ISBN: 1139490303
Category : Computers
Languages : en
Pages : 745
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Book Description
Are all film stars linked to Kevin Bacon? Why do the stock markets rise and fall sharply on the strength of a vague rumour? How does gossip spread so quickly? Are we all related through six degrees of separation? There is a growing awareness of the complex networks that pervade modern society. We see them in the rapid growth of the internet, the ease of global communication, the swift spread of news and information, and in the way epidemics and financial crises develop with startling speed and intensity. This introductory book on the new science of networks takes an interdisciplinary approach, using economics, sociology, computing, information science and applied mathematics to address fundamental questions about the links that connect us, and the ways that our decisions can have consequences for others.
