We use field and natural experiments in online auctions to study the revenue effect of varying the level and disclosure of shipping charges. Our main findings are (1) disclosure affects revenues-for low shipping charges, a seller is better off disclosing; and (2) increasing shipping charges boosts revenues when these charges are hidden. These results are not explained by changes in the number of bidders.
The equilibrium model of Ellison, Fudenberg, and Möbius (2004) predicts that, if two competing auction sites are coexisting, then seller revenues and buyer-seller ratios on each site should be approximately equal. We examine these hypotheses using …eld experiments selling identical items on the eBay and Yahoo auction sites. We …nd evidence that is inconsistent with the equilibrium hypotheses, and suggest that the eBay-Yahoo market is in the process of tipping. Robust statistical tests indicate that revenues on eBay are consistently 20 to 70 percent higher than those on Yahoo. In addition, eBay auctions attract approximately two additional buyers per seller than equivalent Yahoo auctions. We also vary the Yahoo ending rule from a hard close to soft close but …nd no statistically or economically signi…cant changes in revenue or numbers of bidders. Moreover, the magnitude of the revenue and buyer-seller ratio disparities remain inconsistent with the notion of equilibrium coexistence even after accounting for various di¤erentiators between the sites.Keywords: Tipping, equilibrium coexistence, …eld experiments, auctions JEL numbers: C93, D44, L86We thank Jim Wang for excellent assistance with the online auctions. The second author gratefully acknowledges the …nancial support of the National Science Foundation. We are indebted to Maximilian Au¤hammer, Guido Imbens, Dan Levin, and Michael Schwarz for helpful conversations. We also thank seminar participants at Harvard and MIT for their comments. (2004) predicts that, if two competing auction sites are coexisting, then seller revenues and buyer-seller ratios on each site should be approximately equal. We examine these hypotheses using …eld experiments selling identical items on the eBay and Yahoo auction sites. We …nd evidence that is inconsistent with the equilibrium hypotheses, and suggest that the eBay-Yahoo market is in the process of tipping. Robust statistical tests indicate that revenues on eBay are consistently 20 to 70 percent higher than those on Yahoo. In addition, eBay auctions attract approximately two additional buyers per seller than equivalent Yahoo auctions. We also vary the Yahoo ending rule from a hard close to soft close but …nd no statistically or economically signi…cant changes in revenue or numbers of bidders. Moreover, the magnitude of the revenue and buyer-seller ratio disparities remain inconsistent with the notion of equilibrium coexistence even after accounting for various di¤erentiators between the sites.
The ‘brain-opioid theory of social attachment’ (BOTSA) has been proposed as providing the neurobiological underpinnings of social bonding. Endorphins are activated in the brain by a variety of social activities, including social touch, laughter, singing, dancing and feasting. Several of these seem to be involved in the processes of bonding whole communities by allowing large numbers of individuals to be bonded simultaneously. It has been suggested that religious rituals may also be part of this bonding toolkit. We tested this hypothesis in a series of field studies carried out during religious rituals in the UK and Brazil. We found that taking part in the service increased both pain threshold (a standard proxy for endorphin activation) and positive affect, and that between them these enhanced the sense of bonding to the religious group. The results suggest that one of the key functions of religious ritual may be to increase community bonding.
Religious rituals are associated with health benefits, potentially produced via social bonding. It is unknown whether secular rituals similarly increase social bonding. We conducted a field study with individuals who celebrate secular rituals at Sunday Assemblies and compared them with participants attending Christian rituals. We assessed levels of social bonding and affect before and after the rituals. Results showed the increase in social bonding taking place in secular rituals is comparable to religious rituals. We also found that both sets of rituals increased positive affect and decreased negative affect, and that the change in positive affect predicted the change in social bonding observed. Together these results suggest that secular rituals might play a similar role to religious ones in fostering feelings of social connection and boosting positive affect.
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