Advanced Search
MyIDEAS: Login to save this paper or follow this series

Gradual Bidding in eBay-Like Auctions

Contents:

Author Info

  • Attila Ambrus
  • James Burns
  • Yuhta Ishii
Registered author(s):

    Abstract

    This paper shows that in online auctions like eBay, if bidders are not continuously participating in the auction but can only place bids at random times, then many different equilibria arise besides truthful bidding, despite the option to leave proxy bids. These equilibria can involve gradual bidding, periods of inactivity, and waiting to start bidding towards the end of the auction--bidding behaviors common on eBay. In a common value environment, we characterize a class of equilibria that include the best and worst equilibria for the seller. The revenue of the seller in the latter can be a small fraction of what could be obtained at a sealed-bid second-price auction. For large number of bidders, we show that the worst equilibrium has the feature that bidders are passive until near the end of the auction, and then they start bidding incrementally.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://papers.ssrn.com/abstract=2065332
    File Function: main text
    Download Restriction: no

    Bibliographic Info

    Paper provided by Duke University, Department of Economics in its series Working Papers with number 12-12.

    as in new window
    Length: 51
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:duk:dukeec:12-12

    Contact details of provider:
    Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
    Phone: (919) 660-1800
    Fax: (919) 684-8974
    Web page: http://econ.duke.edu/

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:duk:dukeec:12-12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics Webmaster).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.