- Compare Programs
- MA
- MBA
- MSF Full-time
- MSF Part-time
- PhD
- Dual Degrees
- Undergraduate

Faculty & Research

Faculty Information Guide to Faculty Experts Faculty Speciality Search Faculty List Faculty & Research Faculty Resources Publications Positions
		Faculty & Research : Faculty Resources Faculty Publication by Xin Wang Please click on the links below for a profile of the author and to see the full text of the publication, where available. Faculty Member: Xin Wang Title of Publication: "When Auction Meets Fixed Price: A Theoretical and Empirical Examination of Buy-it-Now Auctions" Publication Type: Forthcoming Paper Year of Publication: 2008 Co-Authors: Xin Wang, Alan Montgomery, and Kannan Srinivasan Publication Details: Quantitative Marketing and Economics, 2008 Abstract: Recently fixed pricing and auctions have been brought together in a new pricing format that offers bidders the option of prematurely ending an auction at a fixed price. The growing popularity of auctions presents an interesting pricing decision for managers: whether to sell at a fixed price, in a regular auction, or through a buy-it-now auction. This paper studies eBay’s buy-it-now auction and answers the following research questions: why is fixed price used at traditional auctions, will buy-it-now increase the seller’s profit, how is an optimal price determined, and how is the buy-it-now decision influenced by key factors such as the customer’s cost of participating in the auction, the seller’s reserve price, and the number of potential customers. Our results show that when customers make endogenous participation decisions according to their participation costs, buy-it-now auctions can increase both customers’ utility and sellers’ profit. Endogenous participation has important implications for seller’s pricing decisions such as price formats and levels. Depending on the level of the posted price, the resulting price format could be fixed price, buy-it-now auction or pure auction. Therefore, the seller needs to be careful and take into account market conditions when posting a price at auctions. We empirically test the model assumptions and predictions using data collected from eBay. Publications List Go to >> Publications List - Working Papers Go to >> Publications List - Other Publications Show Publications By keyword: By faculty member: