Bid early and get it cheap - Timing effects in Internet auctions
AbstractMost internet auction sites, like eBay, use a proxy bidding system where bidders can put in their maximum bid and let a proxy bidder (a computer) bid for them. Yet many bidders speculate about how to bid and employ bidding strategies. This paper examines how the timing of bids can affect the ﬁnal price. In a unique data set of 17,000 Scandinavian furniture auctions it turns out that early price increases, i.e. much early bidding, scare off bidders and therefore result in lower prices, whereas much late bidding results in higher prices. Sniping is therefore not a successful strategy to avoid bidding wars.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14811.
Date of creation: Mar 2008
Date of revision:
Internet auctions; Auction fever; Pseudo-endowment; Bidding behavior; eBay; Strategies; WTP;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D4 - Microeconomics - - Market Structure and Pricing
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