This paper presents an exploratory analysis of the determinants of prices in online auctions for collectible United States one-cent coins at the eBay web site. Starting with an initial data set of 20,000 auctions, we perform regression analysis on a restricted sample of 461 coins for which we obtained estimates of book value. We have three major findings. First, a seller's feedback ratings, reported by other eBay users, have a measurable effect on her auction prices. Negative feedback ratings have a much greater effect than positive feedback ratings do. Second, minimum bids and reserve prices have positive effects on the final auction price. In particular, minimum bids appear only to have a significant effect when they are binding on a single bidder, as predicted by theory. Third, when a seller chooses to have her auction last for a longer period of days, this significantly increases the auction price on average. © 2007 Blackwell Publishing Ltd.
CITATION STYLE
Lucking-Reiley, D., Bryan, D., Prasad, N., & Reeves, D. (2007). Pennies from eBay: The determinants of price in online auctions. Journal of Industrial Economics, 55(2), 223–233. https://doi.org/10.1111/j.1467-6451.2007.00309.x
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