Visit eBay to conduct some pricing research. Choose a product category, i.e., books, video game consoles, collectible train sets. Do not choose a specific item, i.e., Guitar Hero for Xbox. Look at some of the current auctions taking place in your chosen category. Using Chapter 8 and other concepts from our course as support, answer the following questions:
1. How might sellers determine the prices they set for opening bids and reserve prices (the minimum price they will accept for an item)?
2. For a particular item in this category (here's where you can choose a specific item), how might potential buyers determine internal and external reference prices?
3. Why do so many sellers use odd pricing?
4. Does price elasticity play a role in determining the final bid price? If so, how?