Abstract
This study investigates the reference price effect of historical price lists—which are provided in the auction description—on ending prices. This paper estimates and compares three different theories for the reference price effect of price lists: adaptation-level theory, range theory and range-frequency theory. In contrast to previous research, we find support for range theory. Specifically, the maximum price on the historical price list positively impacts the auction ending price, while the price range has a negative effect. Furthermore, the reference price effects are attenuated by the number of prices on the list and the type of product sold.
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