Question: A study estimates that the total consumer surplus gained by people participating in auctions on eBay in a recent year was $7 billion. Is it

A study estimates that the total consumer surplus gained by people participating in auctions on eBay in a recent year was $7 billion. Is it likely that the total consumer surplus for the items bought in these auctions was higher or lower than it would have been if consumers had purchased these items for fixed prices in retail stores?

Based on Ravi Bapna, Wolfgang Jank, and Galit Shmueli, “Consumer Surplus in Online Auctions,” Information Systems Research, Vol. 19, No. 4, December 2008, pp. 400–416.

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