Cheap Talk, Round Numbers, and Signaling Behavior

Interesting that round numbers mean lower selling prices but that the sales happen quicker.

Steve Tadelis is one of the co-authors and he's done some interesting research from his time at eBay. Last year he published a paper that paid search ads were not really effective and that made the rounds, even getting mentioned in The Economist. Google wrote back to refute the claim, saying eBay is a special website and search ads do work. Here's that study: http://newsroom.haas.berkeley.edu/research-news/study-finds-...