Reference Price Effects in First-price Private-value Auctions

2021 ◽  
Author(s):  
Matthew J. Walker ◽  
Ernan Haruvy ◽  
Timo Heinrich
Keyword(s):  
Reference Price ◽  
Price Effects ◽  
Private Value Auctions ◽  
Private Value

scholarly journals Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects

2021 ◽  
Vol 16 (5) ◽  
pp. 1492-1516
Author(s):  
Wenhua Hou ◽  
Yuwen Zeng
Keyword(s):  
Supply Chain ◽  
Discount Rate ◽  
Reference Price ◽  
Stackelberg Game ◽  
Lower Boundary ◽  
Retail Price ◽  
Reference Points ◽  
Price Effects ◽  
Retail Prices ◽  
Online Book

(1) Background: A binding recommended retail price has been used in several markets in a variety of forms, and the book market is a typical example. Publishers sell books to online retailers at a unit wholesale discount computed on the cover price. Retailers are then allowed to set the retail price. Therefore, if consumers regard the cover prices as reference points, then they may be more likely to purchase books if retail prices are lower than the cover prices. (2) Methods: We develop a Stackelberg game model for a book supply chain to investigates how reference price effects affect retailers and publisher’s pricing strategies. (3) Results: The results show that retailers will sell printed books at a discount only when the publisher’s wholesale discount rate is not high. Further, as the intensity of the reference price effects increases, (a) the lower boundary of the wholesale discount rate rises, (b) publishers’ profits increase and (c) retailers’ profits increase relative to the level of consumers’ e-books acceptance. (4) Conclusions: This result is related to the fact that the online retailer, such as Amazon and JD.com, like to invoke reference price effects in consumers’ minds by highlighting the printed book’s discount rate.

Technical Note—Dynamic Pricing with Gain-Seeking Reference Price Effects

2016 ◽  
Vol 64 (1) ◽  
pp. 150-157 ◽  
Author(s):  
Zhenyu Hu ◽  
Xin Chen ◽  
Peng Hu
Keyword(s):  
Dynamic Pricing ◽  
Reference Price ◽  
Technical Note ◽  
Price Effects

Gender effects in private value auctions

2006 ◽  
Vol 92 (3) ◽  
pp. 375-382 ◽  
Author(s):  
John C. Ham ◽  
John H. Kagel
Keyword(s):  
Gender Effects ◽  
Private Value Auctions ◽  
Private Value
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