Effects of seller-supplied prices on buyers' product evaluations:: Reference prices in an Internet auction context

A field experiment investigated the impact of two external reference points under the seller's control on the final price of an auction. When an item's seller specified a high external reference price ( a reserve price), the final bid was greater than when the seller specified a low external reference price ( a minimum bid). When the seller provided both high and low reference prices, the reserve influenced the final bid more. The low reference price led to a lower outcome compared to when the seller did not communicate any reference price. The number of bidders influenced outcomes in the absence of seller-supplied reference prices.