New buyer's arrival under dynamic pricing market microstructures: the case of group-buying discounts on the internet

摘要

Dynamic pricing mechanisms occur on the Internet when buyers and sell- ers negotiate the final transaction price for the exchange of goods or services. These mechanisms are used in online auctions(e.g., eBay. com, uBid.com)and name-your- own-price(Priceline. com)formats, for example. The current research studies the dy- namics of one instance of dynamic pricing-group-buying discounts-used by MobShop.com, whose products' selling prices drop as more buyers place their orders. We collect and analyze changes in the number of order for MobShop-listed products Over various periods of time, using an econometric model that reflects our understand- Ing of bidder behavior in the presence of dynamic pricing and different levels of bidder Participation.