Do electronic marketplaces lower the price of goods?
Communications of the ACM
How should CIOs deal with Web-based auctions?
Communications of the ACM
Can online auctions beat online catalogs?
ICIS '99 Proceedings of the 20th international conference on Information Systems
Time Series Analysis, Forecasting and Control
Time Series Analysis, Forecasting and Control
Optimal Design of Internet-Based Auctions
Information Technology and Management
A theoretical and empirical investigation of multi-item on-line auctions
Information Technology and Management
Analysis and Design of Business-to-Consumer Online Auctions
Management Science
Costly Bidding in Online Markets for IT Services
Management Science
Electronic Commerce Research and Applications
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The Internet is enabling new forms of commerce and novel markets. One example is the secondary computer market, facilitating exchange between quality sensitive sellers, oftentimes businesses, and price sensitive buyers. As this market does not have a viable physical counterpart with reference prices, it is developing via online auctions. One question of interest in the evolution of this market is the determinants of prices. Using a dataset of 2,000 laptop auctions in a seven-month period, this research provides support for accepted auction theory while raising questions that deserve further explanation. The negative relationship between supply and auction price supports standard supply and demand theory, while higher prices for better features is consistent with vertical differentiation. Even within accepted theory this research broadens the understanding of auction behavior. There is clear support for the "price decline anomaly" where prices in sequential auctions decline, violating the "law of one price." One result that deserves further attention is that midweek auctions realize higher prices. A second is that price changes over time are not monotonic. Future research should replicate and explain these results, as well as extend them to other auction settings. As the secondary computer market evolves it will impact the primary computer market.