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Title: “Selling Online Versus Live”

Name: Dmitri Diakov

Date: 12/5/13





Reference: Kazumori, E., & McMillan, J. (2005). Selling online versus live. The Journal of Industrial Economics, 53(4), 543-569.



Problem: A seller choosing between auctioning online and live faces a tradeoff: lower transaction costs online against more rents left with the bidders. This is modeled on this tradeoff, and applied to the theory of auctioning art. The pros and cons of evaluating and selling art under the pretense of consumer demand are also explored. Is there a relationship between art evaluation and the final selling price? Do these factors behave differently when Internet is the active tool?



Context: The mediums studied were online, live auction, and retail. Sample size for all three mediums was 100. The website that were looked at were retail websites like Amazon.com.



Findings: A content analysis was conducted to determine which medium sold more art and which medium made more money. The researchers did a comparative analysis of the products sold and were able to determine via algorithms which made was best for what genre.


The findings determined that certain things (Paintings, prints, watches, clocks, books, and jewelry) sold better live. Online, coins silver and furniture sold well.



Recommendations: To make this study more relevant, I would recommend the researchers go back and re-examine their online medium. There are gallery like website, DeviantArt.com for example, that are specifically made for art sale and provide the buyer with options like customization, ability to converse with the artist, and make custom orders. With these factors considered, its difficult to imagine live being better than online.


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Dmitri Diakov

I am a Masters candidate at San Diego State University, in the Mass Communication and Media Studies program.


I am originally from Moscow, Russia. I immigrated to the United States in the summer of 1991, shortly before the collapse of USSR and their Communist government.


Being the only son of a geologist, I have traveled to many different countries and states. In 1999, I finished Sabino high school in Tucson, Arizona and decided to enlist in the United States Marine Corps.


Following my four-year service as a Marine Corps Infantry Squad Leader, I enrolled into the Vancouver Academy of Dramatic Arts.


In 2006, I attended University of British Columbia, earning a Bachelor's of Arts with a double major in History and Politics.


In 2009, I moved to California and worked on various political election campaigns as a team leader.


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