An empirical test of Tobit model robustness in estimating online auction prices over various distributions

2017 ◽  
Vol 10 (4) ◽  
pp. 450 ◽  
Author(s):  
Ming Zhou ◽  
Shaonan Tian ◽  
Taeho Park
Keyword(s):  
Empirical Test ◽  
Tobit Model ◽  
Online Auction ◽  
Auction Prices ◽  
Model Robustness

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.

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.

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.

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)

Sign in / Sign up

Export Citation Format

Share Document