Selling a dollar for more than a dollar? Evidence from online penny auctions
نویسندگان
چکیده
Online penny auctions, emerged recently, are seen as an adaptation of the famous dollar auction and as “the evil stepchild of game theory and behavioral economics.”We use the complete bid and bidder history at such a website to study if penny auctions can sustain excessive profits over time. The website we study is characterized by a revolving door of new bidders who lose money. A very small percentage of bidders are experienced and strategically sophisticated, but they earn substantial profits. Our evidence thus suggests that penny auctions cannot sustain excessive profits without attracting a revolving door of new customers.
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عنوان ژورنال:
- Information Economics and Policy
دوره 36 شماره
صفحات -
تاریخ انتشار 2016