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April 2002
This article surveys empirical findings from recent studies of Internet auctions and summarizes the economic insights gained from these findings. The main questions addressed in this article are: What are the rules of the game used in online auctions and how do these rules influence bidding behavior, such as sniping or bid shading? Is a good reputation, as measured by a seller�s feedback, valued by bidders and is feedback important in making online markets function well? Is the �winner�s curse� present in online auctions? How do minimum bids and secret reserve prices affect bidding and final sale prices?