Auction characteristics, seller reputation, and closing prices: evidence from eBay sales of the iPhone

Authors: II, Craig A. Depken1; Gregorius, Brandon2

Source: International Journal of Electronic Business, Volume 8, Number 2, 9 March 2010 , pp. 170-186(17)

Publisher: Inderscience Publishers

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Abstract:

We analyse auctions from eBay to determine whether seller reputation, auction timing, and auction aesthetics influence closing prices. Using a large sample of Apple iPhone auctions, we find that closing prices are influenced by the level of seller reputation, and sellers with no reputation at stake suffer a substantial loss in closing prices. Moreover, during the sample period investigated there were small arbitrage opportunities in deciding when the auction would end, and in certain aesthetics of the auction, such as using bold fonts and including pictures of the product for sale. These arbitrage opportunities were somewhat reduced when e-bay increased the prices it charged for these aesthetic upgrades six months after the sample period investigated.

Keywords: MANAGEMENT JOURNALS; Business Administration; COMPUTING AND MATHEMATICS JOURNALS; Information Systems and Technology; Internet and Web Services

Document Type: Research article

DOI: http://dx.doi.org/10.1504/IJEB.2010.032094

Affiliations: 1: Department of Economics, Belk College of Business, UNC-Charlotte, Charlotte, NC 28223, USA. 2: Department of Finance, Belk College of Business, UNC-Charlotte, Charlotte, NC 28223, USA

Publication date: 2010-03-09

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  • The objectives of the International Journal of Electronic Business are to develop, promote and coordinate the development and practice of electronic business methods. It also aims to help professionals working in the field, business educators and policy-makers to contribute, to disseminate information and to learn from each other's work. The international dimension is emphasised in order to overcome cultural and national barriers and to meet the needs of accelerating technological change and changes in the global economy.
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