This study seeks to the answer the question of how an individual would trade off between listing fee (i.e., cost of listing an auction item) and transaction probability (i.e., the chance that a product will be sold). Applying the trade-off decision-making paradigm into the auction context, we examine a seller’s choice of online auction outlet and subsequent starting price strategies when facing...

This paper examines multiple contract design choices in the context of transaction and relational attributes and consequent ex ante and ex post transaction costs. It focuses on two understudied themes in the IT outsourcing literature. First, while the literature is predominantly concerned with opportunism and consequent ex post hazard costs that contracts can safeguard against, parties to a con...

Central in this paper is the question what choices customers make for specific channels (physical channel, mobile or Internet) in an eCommerce transaction processes and by what variables their choice is influenced. We are especially interested in the use of channels to collect specific information, initiate transactions, conclude actual fulfilment and offer after sales services. We argue that c...

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financia...

W develop a consumer response model to evaluate and plan pricing and promotions in durable-good markets. We discuss its implementation in the U.S. automotive industry, which “spends” about $45 billion each year in price promotions. The approach is based on a random effects multinomial nested logit model of product (e.g., a vehicle model, such as Hyundai Tucson), and transaction-type choice. Tra...

The recent availability of large data sets covering single transactions on nancial markets has created a new branch of econometrics which has opened up a new door of looking at the microstructure of nancial markets and its dynamics. The speci c nature of transaction data such as the randomness of arrival times of trades, the discreteness of price jumps and signi cant intraday seasonalities, cal...

Many countries have adopted or are considering incentive approaches to environmental regulation, such as tradable permit schemes to control pollution. Regulators influence the success of tradable permit programs by their choice of market rules and permit allocation mechanisms. This paper uses laboratory experiments to study how the transaction costs incurred by participants interact with the in...