Structural Analysis of the "Best Offer" Mechanism on eBay

Simple item page
dc.contributor.advisorSickles, Robin C.
dc.contributor.committeeMemberEl-Gamal, Mahmoud A.
dc.contributor.committeeMemberPasquali, Matteo
dc.creatorToklu, Kerem Yener
dc.date.accessioned2014-10-14T14:44:45Z
dc.date.available2014-10-14T14:44:45Z
dc.date.created2014-05
dc.date.issued2014-04-21
dc.date.submittedMay 2014
dc.date.updated2014-10-14T14:44:45Z
dc.description.abstractIn this study, I examine the "Best Offer" mechanism on eBay by structural analysis. The methods I use in this study are based on the literature on structural auction and "Name your own price" models. Thus, in the fi rst chapter, I provide a survey of this literature. In the second chapter, I conduct a structural analysis, and propose a two step method to estimate the valuations of buyers who use the "Best Offer" format. The method is computationally attractive and can be implemented both parametrically and nonparametrically. It also has the flexibility to capture potential correlation across buyers' valuations and different selling strategies. I test the performance of the estimator in Monte Carlo experiments, and find that the estimator performs reasonably well. In the third chapter, I apply the estimation method to the used car market on eBay. I estimate buyers' valuations and the determinants of them. I then run counterfactual experiments to find the optimal selling strategies. I find that the sellers behavior in the market is consistent with revenue maximization. In the fourth chapter, I propose an alternative approach to estimate the distribution of buyers' valuations based on weak behavioral assumptions. The method does not require the buyers to follow any particular offer strategy; therefore, it captures multiple equilibria that are possible to arise in the environment. Utilizing this feature, I test whether the valuation of a buyer who offers once is on average different from that of a buyer who makes multiple offers. The results suggest that sellers can be better off by following a harder bargaining strategy against the buyers who make multiple offers.
dc.format.mimetypeapplication/pdf
dc.identifier.citationToklu, Kerem Yener. "Structural Analysis of the "Best Offer" Mechanism on eBay." (2014) Diss., Rice University. <a href="https://hdl.handle.net/1911/77558">https://hdl.handle.net/1911/77558</a>.
dc.identifier.urihttps://hdl.handle.net/1911/77558
dc.language.isoeng
dc.rightsCopyright is held by the author, unless otherwise indicated. Permission to reuse, publish, or reproduce the work beyond the bounds of fair use or other exemptions to copyright law must be obtained from the copyright holder.
dc.subjectBest offer
dc.subjectEBay
dc.subjectStructural econometrics
dc.titleStructural Analysis of the "Best Offer" Mechanism on eBay
dc.typeThesis
dc.type.materialText
thesis.degree.departmentEconomics
thesis.degree.disciplineSocial Sciences
thesis.degree.grantorRice University
thesis.degree.levelDoctoral
thesis.degree.nameDoctor of Philosophy
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
TOKLU-DOCUMENT-2014.pdf
Size:
1.54 MB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 2 of 2
No Thumbnail Available
Name:
LICENSE.txt
Size:
2.6 KB
Format:
Plain Text
Description:
Download
No Thumbnail Available
Name:
PROQUEST_LICENSE.txt
Size:
5.84 KB
Format:
Plain Text
Description:
Download
Collections
Rice University Electronic Theses and Dissertations