Question: What method is used to allocate goods on eBay? How does the allocation method used by eBay auctions influence consumer surplus? If you think you

What method is used to allocate goods on eBay? How does the allocation method used by eBay auctions influence consumer surplus?
If you think you would save money by bidding on eBay auctions, you would likely be right. Two Maryland researchers calculated the difference between the actual purchase price paid for auction items and the top price bidders stated they were willing to pay. They found that the difference averaged at least $4 per auction.

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