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Elliot Haas
$2 Billion+ EACH
QUARTERIn 2010
In 1997, the total amount
of listings went from
250K-24mil.
94 million+Active users!
1. Ebay In Depth
2. Data Set of Field Observations
3. Auction Theory and Research Findings
4. Conclusions and Advice for Ebay Users
***All Screenshots, Statistics and Findings shown are either
found on Ebay, or created by my own dataset.
Ebay In Depth
1995 2002
IPO
3.5 Million Shares
$18.00/Share
Pierre Omidyarcreates Ebay
(“AuctionWeb")
App Launchcreates all new
Ebay
mobile market
PayPal
Ebay acquires the
payment service
company for
$1.5 BILLION
Ebay In Depth
English
Dutch
Sealed First-Price
Vickrey
Ebay!
Ebay In Depth
The Data
Passive collection of REAL data from REAL auctions on Ebay!
Auction Tracking over a 10-week period
from January 15th 2011 - April 2nd 2011
The Data
The Data
The Data
watchlist
The Data
Total
Cost
Total # of
Bids
Total # of
BiddersDuration
Seller
Rating
Mean $643.61 19.47 8.76 5 days 93.6
Median $625.00 17 6 5 days 100
Standard Error 4.3544 .75 .38 .124 1.15
Standard
Deviation77.41 13.44 6.85 2.21 20.4
85% of the final prices for iPhone 4’s were
ABOVE the retail cost of $600 (w/o
contract, from Apple)
The Data
Total
Cost
Total #
of Bids
Total # of
BiddersDuration
Seller
Rating
Mean $47.20 13.7 6.1 5 96.2
Median $46.00 13 5 5 100
Standard Error .528 .76 .40 .25 1.3
Standard
Deviation4.75 6.89 3.65 2.22 12.4
97.5% of the games were sold ABOVE the $40
price at other online retailers at the time of the
auction!
The Data
Total # of
Bids
Average
Total Cost
Total # of
Bids
Average
Total Cost
1-Day 12.4 $648 9.1 $46.50
3-Day 16.6 $625 13.8 $46.90
5-Day 19 $631 11.9 $45.58
7-Day 25 $665 15.2 $48.35
10-Day 27.2 $707 21 $52.40
Auction Duration
iPhone
Call of
Duty
The Data
Median $10 $4
Mean 37.35 3.275
Standard Error 6.95 .348
Standard Deviation 123.61 3.11
iPhone
Call of
Duty
The Data
iPhone
iPhone Shipping Costs over $150
17 Auctions
Average Total Cost= $738
Greatest Total Cost= $1,110
The Data
Over 95% $645.73 $48.33
Under 95% $634.19 $42.16
Under 80% $652.90 $39.66
iPhone Call of
Duty
$620.00
$630.00
$640.00
$650.00
$660.00
>95% <95% <80%
$0.00
$20.00
$40.00
$60.00
>95% <95% <80%
Total Costs of items:
WITH “Sealed” = $655
WITHOUT “Sealed” =
$640
The Data
0
100
200
300
400
500
600
700
with sealed
without
Total Costs
Auction Theory
Auction Theory
PURPOSE: Acts as a SAFTEY NET for sellers
PRIVATE or PUBLIC?Bajari, Patrick, Hortac
su, Ali. “The Winner’s
Curse, Reserve
Prices and
Endogenous Entry:
Empirical Insights
From eBay
Auctions”. 2003.
Auction Theory
(Last Minute Bidding)
1. Uncertain about your VALUE of the item
2. Want to keep value information private
3. Want to avoid a BIDDING WAR
Illegally RAISING PRICES by having bidders (hired
by the Seller) use fictitious bids to bid against real bidders.
Auction Theory
Conclusions
Thank You!!Attend my econ senior seminar
presentation in May to learn more!
QUESTION
S?
