Question 6
A collector of rare antique books wants to sell a book from her collection on eBay. Discuss the following decisions, considering the characteristics of the item for sale and the anticipated market for this item:
(a) When offering the book in a regular auction, what should the start price of the auction be?
[8 marks]
(b) When offering the book at a fixed posted price, would the optimal posted price be above or below the optimal start price of an auction in part (a)?
[4 marks]
(c) Should the item be offered in a regular auction or at a fixed posted price?
[13 marks]