Auctions – Lecture 2 Nancy S. Bazar February 25, 2003

2 Class Outline Lucking-Reilly Challenge – Part II Discussion – 30 minutes Ebay seller instructions – 15 minutes Break -15 minutes New eBay Seller Activity – 1 hour 15 minutes Assignment for Next Week – 15 minutes

3 Class Outline Lucking-Reilly Challenge – Part II Discussion 30 min Ebay seller instructions 15 min Break 15 min New eBay Seller Activity 1 hour 15 min Assignment for Next Week 15 min

4 Lucking-Reilley’s Predictions What did you find? New or unusual good types will be offered for sale on the Web. The growth of business to business as opposed to consumer sites. Increased number of sites in area of travel and vacation sites Increased sites offering tickets for resale

5 Did anybody find examples of… English Auctions Dutch Auctions Sealed Bid Auctions –Vickrey Second Price Sealed Bid Auction Double Auctions Multi-unit auctions Ausubel Auction

6 Lucking-Reiley Challenge Part 3

7 eBay Seller Cost Example If you put an item up for auction and set the opening bid for $5.00, your insertion fee will be 30 cents. Then let's say that at the end of your auction, the high bid is $20. The $20 is used to calculate your Final Value fee (a percentage of the final sale price). In this instance, it's $1.05. Add the insertion fee + the Final Value fee to get your total. For this example, you would pay eBay $1.35 (30 cents for the insertion fee and $1.05 for the Final Value Fee). Keep in mind, though, that this page is just an introduction to the basics. View the fees page to fully understand eBay's fee structure.fees page

8 Team Activity Working in Teams, complete the “Lucking-Reiley Challenge – Part III ” activity in 1 hour. The team should be prepared to present its results to the class with a limit of 5 minutes per team. TIPS ON TEAM ACTIVITIES Plan your approach before you execute the task. Determine what skills reside within the team. Determine who will do what based on skills and interest. Help each other - Review each other’s work. Team presentations can be in any format you choose. Try something new!