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Chapter 7 Cyberspace Auctions and Pricing Issues: A
Review of Empirical Findings This chapter surveys empirical findings from studies of Internet auctions and summarizes the theoretical insights gained from these findings. The main questions answered in this chapter are the following: What are the price formation mechanisms used in Internet auctions? What are the main causes of informational asymmetry in these on-line environments, and how can the extent of these asymmetries be quantified? Does observed bidder behavior conform to the theoretical predictions from game theory? How do the findings regarding bidder behavior on Internet auctions shape our theories on mechanism design? |