The Impact of Website Usage on Seller's Expected Auction Revenue in Internet Auctions

Title: The Impact of Website Usage on Seller's Expected Auction Revenue in Internet Auctions

Research Question: How does website usage affect a seller's expected auction revenue in internet auctions?

Methodology: The study uses data from two leading internet auction sites, eBay and Yahoo!Auctions. It examines the relationship between a seller's expected auction revenue and website usage, including unique visitors and page views. The analysis is based on logarithmic specifications of sellers' expected auction revenues and potential bidders' website usage.

Results: The study finds that a 1% increase in unique visitors or page views per listed item leads to a 0.022% (0.007%) and 1.99% (4.74%) increase in a seller's expected auction revenue, respectively. This suggests that increased expected auction revenues can induce more listings, leading to positive feedback effects between the number of listings and website usage.

Implications: The study indicates that website usage is a valuable tool for sellers in internet auctions. It helps them gauge the potential size of their audience and make informed decisions about where to list their items. The findings also suggest that internet auction sites with lower listings may have greater incentives to increase listings to take advantage of these feedback effects.

Link to Article: https://arxiv.org/abs/0109088v1 Authors: arXiv ID: 0109088v1