Date of Award
Spring 5-3-2024
Document Type
Thesis
Degree Name
Master of Arts (MA)
Department
Economics
First Advisor
Ingmar Nyman
Second Advisor
Partha Deb
Academic Program Adviser
Karna Basu
Abstract
This study provides evidence of adverse selection by examining the disparity in the value of a photo between dealer sellers and non-dealer sellers in online used-car auctions. It examines the impact of photos on three outcomes in auctions of auto- mobiles: bid prices, the number of bidders, and the probability of a trade. To do so, it uses non-linear regression models and data from 80,000 completed used-car auctions on eBay Motors from March to October 2006. The results show that an additional photo will increase all three of the outcome variables and more so for non-dealers than for dealers. The marginal effects of an additional photo on price, number of bidders and the probability of sale are all significantly and substantially greater for non-dealers than dealers.
Recommended Citation
Nizard, Ilanith, "Adverse Selection in Online Auctions: A Study of eBay Motors" (2024). CUNY Academic Works.
https://academicworks.cuny.edu/hc_sas_etds/1177