Do Amateur Sellers Adopt The Professionals Price Ending Formats? Lessons From The Used Car Market

Abstract

This study investigates the differences between professional retailers and amateur resellers in their adoption of different price ending formats. We conduct our analysis on a 1,700 ads car pool representative of the French used car market to demonstrate how seller profiles and car attributes impact price ending formats adoption. The results reveal that amateur sellers are more likely to use round ending prices than professionals, especially for expensive and high mileage cars. Furthermore, product attributes (extras) and obsolescence indicators significantly moderate the choices of price ending formats.