Goodwill Can Hurt: A theoretical and experimental investigation of return policies in auctions

doi:10.1016/j.geb.2016.08.002

CORC > 上海财经大学 > 上海财经大学

	Goodwill Can Hurt: A theoretical and experimental investigation of return policies in auctions
	Cadsby, C. Bram 1; Du, Ninghua 2,3; Wang, Ruqu 4,5; Zhang, Jun 6
刊名	GAMES AND ECONOMIC BEHAVIOR
	2016-09
卷号	99 页码:224-238
关键词	Auctions Return policies Common value Experiment
ISSN号	0899-8256
DOI	10.1016/j.geb.2016.08.002
英文摘要	Will generous return policies in auctions benefit bidders? We investigate this issue using second-price common-value auctions. Theoretically, we find that the symmetric bidding equilibrium is unique unless returns are free, and when returns are free there exist multiple equilibria with different implications for sellers. Moreover, more generous return policies mitigate the winner's curse, but also push the bids higher, thus hurting bidders by eroding their surplus. In the experiment, bids increase and bidders' earnings decrease with more generous return policies as predicted. With free returns, many bidders bid above the highest possible value, subsequently returning the item regardless of value. Though consistent with equilibrium behavior, this is not optimal for sellers. (C) 2016 Elsevier Inc. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ACADEMIC PRESS INC ELSEVIER SCIENCE
WOS记录号	WOS:000386194300015
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1217]
专题	上海财经大学
通讯作者	Cadsby, C. Bram
作者单位	1.Univ Guelph, Dept Econ & Finance, 50 Stone Rd East, Guelph, ON N1G 2W1, Canada; 2.Shanghai Univ Finance & Econ, Key Lab Math Econ, Shanghai 200433, Peoples R China; 3.Shanghai Univ Finance & Econ, Sch Econ, Shanghai 200433, Peoples R China; 4.Queens Univ, Dept Econ, Kingston, ON K7L 3N6, Canada; 5.Zhejiang Univ, Coll Econ, Hangzhou 310027, Zhejiang, Peoples R China; 6.Univ Technol Sydney, Sch Business, Econ Discipline Grp, Sydney, NSW, Australia
推荐引用方式 GB/T 7714	Cadsby, C. Bram,Du, Ninghua,Wang, Ruqu,et al. Goodwill Can Hurt: A theoretical and experimental investigation of return policies in auctions[J]. GAMES AND ECONOMIC BEHAVIOR,2016,99:224-238.
APA	Cadsby, C. Bram,Du, Ninghua,Wang, Ruqu,&Zhang, Jun.(2016).Goodwill Can Hurt: A theoretical and experimental investigation of return policies in auctions.GAMES AND ECONOMIC BEHAVIOR,99,224-238.
MLA	Cadsby, C. Bram,et al."Goodwill Can Hurt: A theoretical and experimental investigation of return policies in auctions".GAMES AND ECONOMIC BEHAVIOR 99(2016):224-238.