Consumer surplus in eBay

A paper that we wrote on “Consumer surplus in online auctions” was recently accepted to the leading journal Information Systems Research. Reuters interviewed us about the paper (Study shows eBay buyers save billions of dollars), which is of special interest these days due to the change in CEO at eBay. Although the economic implications of the paper are interesting and important, the neat methodology is a highlight in itself. So here’s what we did: Consumer surplus is the difference between what a consumer pays and what s/he was willing to pay for an item. eBay can measure the consumer surplus … Continue reading Consumer surplus in eBay