Browse

The Role of the Buyout Price in the Internet Auction

Cited 0 time in Web of Science Cited 0 time in Scopus
Issue Date
2004-12
Publisher
College of Business Administration (경영대학)
Citation
Seoul Journal of Business, Vol.10 No.2, pp. 17-26
Keywords
Internet auctionsBuyout priceMaximum acceptable bid levelAuction formats
Abstract
We consider an Internet auction with the buyout price as an

optional feature. Under IID assumption and risk-neutral buyers, we

show that the expected revenue to the seller from the Internet auction

with the buyout price is larger than the expected revenue from the

Internet auction without the buyout price. Moreover, given the uniform

distribution for reservation values, the revenue gain of employing the

buyout price option is getting smaller as the number of potential buyers

becomes larger.
ISSN
1226-9816
Language
English
URI
https://hdl.handle.net/10371/1807
Files in This Item:
Appears in Collections:
College of Business Administration/Business School (경영대학/대학원)Dept. of Business Administration (경영학과)Seoul Journal of Business (SJB)Seoul Journal of Business Volume 10, Number 1/2 (2004)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse