Can bidder’s buying patterns affect the price in online auctions for heterogeneous goods?

Abstract

Until recently, there have little reason for any one to pay much attention to what factors will affect the final transaction price in online auctions. While almost all of the existing papers on the determinants of price are based on homogeneous goods, this paper investigates the determinants of the price for heterogeneous goods contained in some categories which are sold at the eBay website from the viewpoint of sellerpsilas buying patterns. The empirical results suggest that some factors such as the second price, the number of bidders, and the presence of insurance had positive and significant impacts on the final price. The sellerpsilas reputation has a positive, but limited impact on a buyerpsilas willingness to pay for an auction item. In contrast, the closing time features such as closing on weekend or in the evening do not have significant impacts on the auction price.