The effect of surcharge on price in online auctions
Ernan Haruvy,
Boram Lim () and
Peter Popkowski Leszczyc
Additional contact information
Boram Lim: University of Kansas
Electronic Commerce Research, 2023, vol. 23, issue 2, No 19, 1182 pages
Abstract:
Abstract We examine auctions for identical items with different surcharges. We find an inverted U-shape relationship between the surcharge amount and the price premium for the auction with the higher surcharge. To explain this pattern, we fit an empirical model with a two-stage process for the consideration of surcharges. In the first stage, consumers choose between two identical auctions, and in the second stage, they determine whether to place a bid. Using a novel online auction dataset that includes search and bids, we find the determinants of both search and bid, and map the relationship between surcharge and expected revenue. We note that the optimal surcharge changes inversely with bidders’ level of experience and the expected number of bidders. The findings show conditions under which consumers fail to accurately process price and surcharge differences.
Keywords: Partitioned pricing; Surcharges; Internet auctions; Field study (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://link.springer.com/10.1007/s10660-021-09508-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:elcore:v:23:y:2023:i:2:d:10.1007_s10660-021-09508-6
Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10660
DOI: 10.1007/s10660-021-09508-6
Access Statistics for this article
Electronic Commerce Research is currently edited by James Westland
More articles in Electronic Commerce Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().