publication . Research . Article . 2017

Selling Money on Ebay: A Field Study of Surplus Division

Gizatulina, Alia; Gorelkina, Olga;
Open Access English
  • Published: 11 Aug 2017
  • Publisher: Max Planck Institute for Research on Collective Goods Bonn
  • Country: United Kingdom
Abstract
We study the division of trade surplus in a competitive market environment by conducting a natural field experiment on German eBay. Acting as a seller, we offer Amazon gift cards with face values of up to 500 Euro. Randomly arriving buyers, the subjects of our experiment, make price offers according to eBay rules. Using a novel decomposition method, we infer offered shares of trade surplus and find that the average share proposed to the seller amounts to 29%. Additionally, we document: (i) insignificant effects of stake size; (ii) poor use of strategically relevant public information; and (iii) behavioural differences between East and West German subjects.
Subjects
ACM Computing Classification System: ComputingMilieux_COMPUTERSANDSOCIETY
free text keywords: C72, C93, C57, Field experiment, ultimatum game, surplus division, bargaining, Internet trade, eBay, ddc:330, Public information, Business studies, Economic surplus, Commerce, Balance of trade, German, language.human_language, language, Economics, Natural field, Microeconomics
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publication . Research . Article . 2017

Selling Money on Ebay: A Field Study of Surplus Division

Gizatulina, Alia; Gorelkina, Olga;