Optimal Fees in Internet Auctions

Alexander Matros and Andriy Zapechelnyuk

No 3, Discussion Papers from Kyiv School of Economics

Abstract: An auction house runs a second-price auction with a possibility of resale through re-auctions. It collects listing and closing fees from the seller. We find the fees which maximize the revenue of the auction house. In particular, we show that the optimal listing fee is zero. Our findings are consistent with the policies of eBay, Amazon, Yahoo, and other Internet auctions.

Keywords: Internet auctions; auctions with resale; auction house; listing fee; closing fee (search for similar items in EconPapers)
JEL-codes: C78 D44 D82 (search for similar items in EconPapers)
Date: 2008-01
New Economics Papers: this item is included in nep-gth, nep-ict and nep-mkt
Note: Published in Review of Economic Design, 12, 155-163 (2008)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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http://repec.kse.org.ua/pdf/KSE_dp3.pdf Revised version, January 2008 (application/pdf)

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Journal Article: Optimal fees in internet auctions (2008)
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