Bidding Behavior in Competing Auctions: Evidence from eBay
AbstractMuch of the existing auction literature treats auctions as running independently of one another, with each bidder choosing to participate in only one auction. However, in many online auctions, a number of substitutable goods are auctioned concurrently and bidders can bid on several auctions at the same time. Recent theoretical research shows how bidders can gain from the existence of competing auctions, the current paper providing the first empirical evidence in support of competing auctions theory using online auctions data from eBay. Our results indicate that a significant proportion of bidders do bid across competing auctions and that bidders tend to submit bids on auctions with the lowest standing bid, as the theory predicts. The paper also shows that winning bidders who cross-bid pay lower prices on average than winning bidders who do not.
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Bibliographic InfoPaper provided by EconWPA in its series Microeconomics with number 0505001.
Length: 23 pages
Date of creation: 06 May 2005
Date of revision:
Note: Type of Document - pdf; pages: 23. forthcoming in EER
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Competing Auction; Cross-Bidding; Auction Empirics;
Other versions of this item:
- Anwar, Sajid & McMillan, Robert & Zheng, Mingli, 2006. "Bidding behavior in competing auctions: Evidence from eBay," European Economic Review, Elsevier, vol. 50(2), pages 307-322, February.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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