Spatial Competition on Psychological Pricing Strategies -- Preliminary Evidence from an Online Marketplace
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arXiv
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| Format: | Preprint |
| Published: |
2024
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| _version_ | 1866911380903297024 |
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| author | Schindl, Magdalena Reichel, Felix |
| author_facet | Schindl, Magdalena Reichel, Felix |
| contents | This paper investigates whether spatial proximity shapes psychological-pricing choices on Austria's C2C marketplace willhaben. Two web-scraped snapshots of 826 Woom Bike listings - a standardised product sold on the platform reveal that sellers near direct competitors are more likely to adopt 9-, 90-, or 99-ending prices, who also use such pricing strategy unconditional on product characteristics or underlying spatiotemporal differences. Such strategy is associated with an average premium of approximately cet. par. 3.4 %. Information asymmetry persists: buyer trust hinges on signals such as the "Trusted Seller" badge, and missing data on the "PayLivery" feature. Lacking final transaction prices limits inference. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2411_07808 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Spatial Competition on Psychological Pricing Strategies -- Preliminary Evidence from an Online Marketplace Schindl, Magdalena Reichel, Felix Econometrics This paper investigates whether spatial proximity shapes psychological-pricing choices on Austria's C2C marketplace willhaben. Two web-scraped snapshots of 826 Woom Bike listings - a standardised product sold on the platform reveal that sellers near direct competitors are more likely to adopt 9-, 90-, or 99-ending prices, who also use such pricing strategy unconditional on product characteristics or underlying spatiotemporal differences. Such strategy is associated with an average premium of approximately cet. par. 3.4 %. Information asymmetry persists: buyer trust hinges on signals such as the "Trusted Seller" badge, and missing data on the "PayLivery" feature. Lacking final transaction prices limits inference. |
| title | Spatial Competition on Psychological Pricing Strategies -- Preliminary Evidence from an Online Marketplace |
| topic | Econometrics |
| url | https://arxiv.org/abs/2411.07808 |