Consumer Demand with Social Influences: Evidence from an E-Commerce Platform

• 成果类型: Article; Early Access
• 署名作者: Caoui, El Hadi; Farronato, Chiara; Horton, John J.; Schultz, Robert
• 署名单位: University of Toronto; University Toronto Mississauga; University of Toronto; Harvard University; Centre for Economic Policy Research - UK; Massachusetts Institute of Technology (MIT)
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2024.04995
• 发表日期: 2025
• 关键词: conspicuous consumption; multiunit auctions; e -commerce platform; Inventory management

摘要

For some types of goods, rarity itself is valued: items considered fashionable are demanded in part because they are unique. In this paper, we explore the economics of rare goods using auctions of limited-edition shoes held by an e-commerce platform. We model endogenous entry and bidding in multiunit auctions and construct demand curves from realized bids. We find that doubling inventory reduces willingness to pay by 8%-15%. From the monopolist's perspective, ignoring the value of rarity leads to substantial overproduction: Auctioned quantities are 88% above the profit-maximizing level. From the consumers' perspective, however, the negative spillovers from quantity restriction more than offset the benefits of rarer goods.