Auction Pricing: A Case Study Assessing The Price Elasticity Of Demand Based On Supply And The Revenue Equivalence Theorem

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This paper addresses the price elasticity of demand related to various categories of goods sold within the consignment auction-marketing environment. An actual ongoing non-traditional business organization specializing in the nation-wide distribution of merchandise via consignment auctions provides data for this case study. Originally developed and initiated in 1993 in response to the common need business organizations have for product liquidation outlets, this form of distribution targets audiences contemplating the distribution of products, including manufacturers, wholesalers, retailers, and other entrepreneurs. This method of distribution is the C.A.L.M. (The Consignment Auction Liquidation Marketing) Method of Mass Product Distribution. A summative evaluation regarding the C.A.L.M. Method of Mass Product Distribution was conducted in 2004 covering each of the first ten years of operation.