eBay is by far the world’s largest online auction site. Millions of people are doing transactions through it. eBay offers the sellers several additional listing options (“ALO” for short) at certain prices for them to enhance the visibility or attractiveness of their auction listings. In this paper we tried to find out how much these ALO can help to improve the outcome of an online auction, focusing mainly on the multiunit auctions of a certain brand of diet pill. The 116 data records were collected within a period of one month from the eBay’s “Diet and Weight loss” sub-category. In general, our idea can be applied to any other specific good sold on eBay. Our results provide important implications to eBay sellers in terms of deciding which ALO to use when listing his particular item for sale on eBay. Based on our findings, eBay or any auction sites could also apply our approach to estimate the optimal level of pricing of these ALO through computing the average value of the ALO for all transactions.
Ge, Hong; Teo, Hock Hai; and Lee, Tom Sang-Yong, "Additional Listing Options on ebay: Are They Worth The Money" (2002). ECIS 2002 Proceedings. 29.