The Determinants of Price in Internet Auctions of Used Cars (Report‪)‬

Introduction E-commerce has become a larger part of the U.S. and world economy over the last decade. Americans were expected to spend approximately $120 billion online in 2004 (Economist, 2004a). Forrester Research believes that number will double by 2007 (Mullaney, 2004). Since 1999, E-commerce retail sales have grown at an annual rate of 34% (Willis, 2004). Internet auction sales, which are a part of the Ecommerce market, have grown even more rapidly. Sales on eBay, the largest online auction company, grew 51% in 2002 and 60% in 2003. eBay's total gross sales amounted to $24 billion in 2003 (Bajari & Hortacsu, 2004; Economist, 2004b).