Many firms in the business to consumer market sell identical products online using auctions and posted prices at the same time. In this paper, we develop and analyze a model of the key tradeoffs sellers face in such a dual-channel setting that is built around the interplay of three design...

We use a simulation to study the profitability of selling consumer goods online using posted price and auction simultaneously. We consider the open ascending-bid auction mechanism and develop a model of consumers' behavior when faced with the choice between the two channels. With the simulation...