|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/26419
|
| | |
| Title: | | Reserve price formation in online auctions  |
| Authors: | | Englmaier, Florian Schmöller, Arno |
| Issue Date: | | 2008 |
| Series/Report no.: | | CESifo working paper 2374 |
| Abstract: | | We use a unique hand collected data set of 6 258 auctions from the online football manager game Hattrick to study micro-patterns of reserve price formation. We find that chosen reserve prices exhibit both, very sophisticated and irrational behavior by the sellers. Reserve prices pick up the birthday effect in sales prices, documented in Englmaier and Schmöller (2008) and are adjusted remarkably nuanced to the resulting sales price pattern. Moreover, reserve prices are too clustered (around multiples of 50 000) as to be consistent with fully rational behavior. Furthermore, we find evidence for entitlement effects and the sunk cost fallacy as there is a huge positive effect on the reserve price when the player has been acquired previously. |
| Subjects: | | Auctions reserve price bounded rationality heuristics entitlement effect |
| JEL: | | D12 D44 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/26419
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|