Consumer bidding is common in a wide variety of markets. An important source of friction in many markets with bidding is the cost of participation. We investigate the impact of participation costs on bidder entry and bidding behavior using incentive-compatible laboratory experiments with...

Name-your-own-price selling is a tractable laboratory paradigm for studying bidding behavior because it involves only one bidder per transaction. Using data from an incentive-compatible laboratory experiment that implemented a name-your-own-price seller who charges entry fees, we estimate a...

With increasing numbers of consumers in auction marketplaces, we highlight some recent approaches that bring additional economic, social, and psychological factors to bear on existing economic theory to better understand and explain consumer behavior in auctions. We also highlight specific...

At Internet auction sites like eBay, similar goods are often sold in a sequence of auctions, separated by small amounts of time. Buyers can therefore benefit from forward-looking strategies that take into account available information about future auctions. This paper develops a model of such...

This paper presents five empirical tests of the popular modeling abstraction that assumes bids from online auctions with proxy bidding can be analyzed “as if” they were bids from a second price sealed-bid auction. The tests rely on observations of the magnitudes and timings of the top two...

When capacity-constrained bidders have information about a good sold in a future auction, they need to take the information into account in forming today's bids. The capacity constraint makes even otherwise unrelated objects substitutes and creates an equilibrium link between future competition...

This paper models sequential auctioning of two perfect substitutes by a strategic seller, who learns about demand from the first-auction price. The seller holds the second auction only when the remaining demand is strong enough to cover her opportunity cost. Bidding in anticipation of such a...