Abstract
AbstractThere is a shift in livestock auction sales in consolidation of live markets and movement toward virtual marketplaces. We examine buyer preferences for nonracing stock-type horses sold through virtual auctions to better understand how animals are sold and their valuation. A shift towards online sales of equine has impacted the number of potential buyers through increased exposure to sale horses. Using data collected from online auctions, we estimate factors influencing propensity to sell as well as price determinants in this market platform. We find many factors contribute to the likelihood of a horse selling and to the final sale price.
Highlights
The platform of a central marketplace has evolved from ancient agoras and open-air markets to modern, virtual marketplaces such as online sales websites and social media groups with individuals looking to buy or sell goods
Equine marketplaces have followed this trend with the emergence of websites created to buy and sell horses, online auction websites and more recently, the development of virtual marketplaces via social media platforms
Online auctions likely increase the number of potential buyers for any given horse and provide insight into consumer preferences for the horses purchased through the auction
Summary
The platform of a central marketplace has evolved from ancient agoras and open-air markets to modern, virtual marketplaces such as online sales websites and social media groups with individuals looking to buy or sell goods. This study aims to provide an updated estimation of attribute-specific contributions to sales price in the presence of the current marketing system with a modernized investigation into buyer demands and update the propensity to sell for all horses entered into the online auction accounting for changing access to information. Individuals looking to purchase a horse may be searching for a combination of attributes: level of training, breed, age, sex, height, pedigree, success in showing or competitions, success of progeny, and color, among other factors. Sellers marketing their horse(s) provide information to attract buyers and convey value. To reduce asymmetric information and decrease possible market failures, auctions frequently employ policies (e.g., conditions of sale and required disclosures) for information disclosure requirements from the seller with repercussions, including the termination of a sale, if those policies are violated
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