The Bidder's Curse

2011 ◽  
Vol 101 (2) ◽  
pp. 749-787 ◽  
Author(s):  
Ulrike Malmendier ◽  
Young Han Lee
Keyword(s):  
Large Fraction ◽  
Online Auction ◽  
Limited Attention ◽  
Board Game ◽  
Fixed Price ◽  
Novel Approach ◽  
Auction Price ◽  
Fixed Prices ◽  
Auction Prices ◽  
Broad Cross Section

We employ a novel approach to identify overbidding in auctions. We compare online auction prices to fixed prices for the same item on the same webpage. In detailed data on auctions of a board game, 42 percent of auctions exceed the simultaneous fixed price. The result replicates in a broad cross-section of auctions (48 percent overbidding). A small fraction of overbidders, 17 percent of bidders, suf fices to generate the large fraction of auctions with overbidding. We show that the observed behavior is inconsistent with rational behavior, even allowing for uncertainty about prices and switching costs, since the expected auction price also exceeds the fixed price. Limited attention best explains our results. (JEL D12, D44)

Tana and the Handbag

2011 ◽  
pp. 344-360
Author(s):  
Val A. Hooper ◽  
Sid L. Huff ◽  
Jon McDonald
Keyword(s):  
Brand Extension ◽  
Online Auction ◽  
Event Analysis ◽  
Considerable Influence ◽  
Site Factors ◽  
Sport Event ◽  
Brand Strength ◽  
Product Features ◽  
Auction Price ◽  
Auction Prices

Research into the determinants of online auction prices has tended to group them into buyer factors, seller factors and site factors. A case is presented which recounts how a $30 handbag was sold for $ 22,750 in an online auction shortly after a national sport event. Analysis of the case indicates that, in addition to the three groups of factors already identified, other factors can exert a considerable influence on the final auction price. A model is proposed which depicts five groups of factors impacting the final price: buyer factors, seller factors, site factors which are expanded to include timing of the auction, and site brand strength; product factors which include product features, brand strength, and brand extension/association; and promotion, which includes media publicity. While not all factors will impact on every auction, due consideration should be accorded each of them by both buyers and sellers.

The Rugby Player and the Handbag

2009 ◽  
Vol 5 (4) ◽  
pp. 22-38 ◽  
Author(s):  
Val A. Hooper ◽  
Sid L. Huff ◽  
Jon MacDonald
Keyword(s):  
Final Analysis ◽  
Brand Extension ◽  
Rugby Player ◽  
Online Auction ◽  
Considerable Influence ◽  
Site Factors ◽  
Brand Strength ◽  
Product Features ◽  
Auction Price ◽  
Auction Prices

Research into the determinants of online auction prices has tended to group them into buyer factors, seller factors and site factors. A case is presented which records how a $30 handbag was sold for $ 22,750 in an online auction shortly after a national sport final. Analysis of the case indicates additional factors which can exert a considerable influence on the final auction price. A model is proposed which depicts five groups of factors impacting the final price: buyer factors, seller factors, site factors which are expanded to include timing of the “action”, and site brand strength; product factors which include product features, brand strength, and brand extension/association; and promotion, which includes media publicity. While not all factors will impact on every auction, due consideration should be accorded each of them.

Price Regulation and Pay-for-Performance in Public Health Systems

2018 ◽  
Author(s):  
Luigi Siciliani
Keyword(s):  
United States ◽  
United Kingdom ◽  
Policy Development ◽  
Pay For Performance ◽  
The United States ◽  
Price Regulation ◽  
Payment Systems ◽  
The United Kingdom ◽  
Fixed Price ◽  
Fixed Prices

Payment systems based on fixed prices have become the dominant model to finance hospitals across OECD countries. In the early 1980s, Medicare in the United States introduced the Diagnosis Related Groups (DRG) system. The idea was that hospitals should be paid a fixed price for treating a patient within a given diagnosis or treatment. The system then spread to other European countries (e.g., France, Germany, Italy, Norway, Spain, the United Kingdom) and high-income countries (e.g., Canada, Australia). The change in payment system was motivated by concerns over rapid health expenditure growth, and replaced financing arrangements based on reimbursing costs (e.g., in the United States) or fixed annual budgets (e.g., in the United Kingdom). A more recent policy development is the introduction of pay-for-performance (P4P) schemes, which, in most cases, pay directly for higher quality. This is also a form of regulated price payment but the unit of payment is a (process or outcome) measure of quality, as opposed to activity, that is admitting a patient with a given diagnosis or a treatment. Fixed price payment systems, either of the DRG type or the P4P type, affect hospital incentives to provide quality, contain costs, and treat the right patients (allocative efficiency). Quality and efficiency are ubiquitous policy goals across a range of countries. Fixed price regulation induces providers to contain costs and, under certain conditions (e.g., excess demand), offer some incentives to sustain quality. But payment systems in the health sector are complex. Since its inception, DRG systems have been continuously refined. From their initial (around) 500 tariffs, many DRG codes have been split in two or more finer ones to reflect heterogeneity in costs within each subgroup. In turn, this may give incentives to provide excessive intensive treatments or to code patients in more remunerative tariffs, a practice known as upcoding. Fixed prices also make it financially unprofitable to treat high cost patients. This is particularly problematic when patients with the highest costs have the largest benefits from treatment. Hospitals also differ systematically in costs and other dimensions, and some of these external differences are beyond their control (e.g., higher cost of living, land, or capital). Price regulation can be put in place to address such differences. The development of information technology has allowed constructing a plethora of quality indicators, mostly process measures of quality and in some cases health outcomes. These have been used both for public reporting, to help patients choose providers, but also for incentive schemes that directly pay for quality. P4P schemes are attractive but raise new issues, such as they might divert provider attention and unincentivized dimensions of quality might suffer as a result.

Nonparametric panel estimation of online auction price processes

2010 ◽  
Vol 40 (1) ◽  
pp. 51-68 ◽  
Author(s):  
Yu Yvette Zhang ◽  
Jingping Gu ◽  
Qi Li
Keyword(s):  
Online Auction ◽  
Panel Estimation ◽  
Auction Price

scholarly journals Introduction of food distribution in the conditions of the supply crisis before the revolution of 1917 (based on the materials of Kostroma Province)

2021 ◽  
Vol 27 (4) ◽  
pp. 35-38
Author(s):  
Vladislav A. Kolesnikov
Keyword(s):  
Food Policy ◽  
Russian Empire ◽  
State Regulation ◽  
The State ◽  
Food Distribution ◽  
Russian Government ◽  
Local Authorities ◽  
Fixed Price ◽  
Fixed Prices ◽  
The Russian Empire

By the end of 1916, the food issue had been escalating in the Russian Empire. The Russian government faced the need to supply not only the army, but also the provinces with consuming bread, and the civilians were hostages of the transport crisis. The fixed prices for bread introduced in September 1916 led to the restriction of market trade. An important step in the state regulation of the bread market was the unfolding of bread. The article provides an analysis of food policy before the introduction of the unfolding. The food distribution of the tsarist government was an attempt to mobilise grain resources for the needs of the army and the civilians. The peculiarity of the reform was the combination of the principle of duty and payment of the product at a fixed price. The expansion is considered both from the all-Russia positions, taking into account the experience of grain-producing provinces, and in terms of Kostroma Province, which had lack of developed agriculture. The article pays special attention to the measures of local authorities. The governor, the zemstvo, the volost peasant gatherings were not ready to complete the tasks in full. The article concludes that the food distribution in the bread-consuming province, experiencing a crisis of planned supply, could not end successfully.

Ice stream formation

2021 ◽  
Author(s):  
Christian Schoof ◽  
Elisa Mantelli
Keyword(s):  
Secondary Flow ◽  
Large Fraction ◽  
Ice Sheet ◽  
Limited Attention ◽  
Small Scale ◽  
Effective Pressure ◽  
Ice Streams ◽  
Ice Stream ◽  
Analytical Criterion ◽  
Stream Formation

<div>Ice streams are the arteries through which a large fraction of the ice lost from Antarctica is discharged. With the introduction of "higher order" mechanics, the representation of ice streams in ice sheet models appears to have become more robust, eliminating previously ubiquitous grid effects. The detailed processes that control ice stream formation --- and the minimal ingredients that a model requires to represent them faithfully --- remain incompletely explored. Here we focus on "pure" ice streams, not confined to topographic troughs. We study two mechanisms that can cause their formation through feedbacks between enhanced dissipation and faster sliding, and study the minimal model capable of reproducing both mechanisms. In the first mechanism, increased dissipation raises basal temperature before the melting point is reached, and subtemperate sliding is in turn facilitated by these higher temperatures, leading to yet more dissipation. This mechanism has received very limited attention in the literature, and is not fully incorporated in at least some commonly used ice sheet model. The second, better-studied mechanism involves basal effective pressure rather than temperature as the degree of freedom that creates a positive feedback: increased dissipation produces additional meltwater. Draining that excess water requires a lower effective pressure in typical "distributed" draiange ssytems. Reduced effective pressure in turn leads to faster sliding, and yet more dissipation. The two mechanisms are distinct and one can operate in the absence of the other, but both can cause the formation of ice streams whose trunks have very similar features. Using a novel, hybrid `shallow/"full Stokes" flow' model derived from first principles, we show how accelerated flow due to either feedback leads to advection of cold ice to the bed, and demonstrate that this is the key negative feedback that controls ice steam formation due to its role in cooling the bed. Downward advection occurs both along the axis of the incipient ice stream, and in the transverse plane. There, a significant secondary flow towards the ice stream centre develops, which is of equal importance to along-flow advection in controlling heat transport. Our model is unique in its ability to fully resolve that secondary flow while still using the "shallowness" of the flow to simplify computations of ice stream physics. The formation of ice streams can be understood as "spatial" instabilities in which small-scale structure is amplified in the downflow direction, for which we derive an analytical criterion. Our model self-consistently predicts the formation of a sharply-defined ice stream margin and very cold-bedded ice ridges over a relatively short downstream distance from the onset of patterning for both mechanisms. The model also shows how basal dissipation in the margin leads to appreciable stream widening in the downstream direction, while englacial dissipation in combination with advection can lead to a pronounced peak in basal water supply some distance inside the margins. We demonstrate additionally that the emergent patterns can be unstable in time, and identify the properties required of a model that can handle such temporal instabilities.</div>

scholarly journals PRICING IN ONLINE AUCTION PROCUREMENT A REVIEW OF EMPIRICAL METHODS AND CURRENT UNDERSTANDINGS

2012 ◽  
Vol 09 (03) ◽  
pp. 1250017
Author(s):  
MING ZHOU ◽  
WILLIAM Y. JIANG ◽  
MENGLIN CAO
Keyword(s):  
Supply Chain ◽  
Empirical Studies ◽  
Online Auctions ◽  
Online Auction ◽  
Empirical Methods ◽  
Major Interest ◽  
Auction Prices ◽  
Auction Pricing

The online auction has become an important channel for procurement and sourcing management. As firms often expect lower procurement prices through online auctions, how the prices are determined in online auctions should be of major interest to procurement managers and supply chain researchers. Despite the abundant empirical studies on online auction prices, an aggregated view is still absent. This study fills this gap with a review of extant studies. More specifically, this study provides summaries of all major theories behind online auction pricing, defines and analyzes often encountered econometric issues, and discusses how the treatments of these issues have been operationalized. Towards the end, existing findings on determinants of online auction prices are integrated and examined. The purpose of this study is to provide a convenient and precise package of current studies for researchers and professionals.

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