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Statistical Properties Of Online Auctions

Author

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  • ALIREZA NAMAZI

    (Institut für Theoretische Physik, Universität zu Köln, 50937 Köln, Germany)

  • ANDREAS SCHADSCHNEIDER

    (Institut für Theoretische Physik, Universität zu Köln, 50937 Köln, Germany)

Abstract

We characterize the statistical properties of a large number of online auctions run on eBay. Both stationary and dynamic properties, like distributions of prices, number of bids etc., as well as relations between these quantities are studied. The analysis of the data reveals surprisingly simple distributions and relations, typically of power-law form. Based on these findings we introduce a simple method to identify suspicious auctions that could be influenced by a form of fraud known as shill bidding. Furthermore the influence of bidding strategies is discussed. The results indicate that the observed behavior is related to a mixture of agents using a variety of strategies.

Suggested Citation

  • Alireza Namazi & Andreas Schadschneider, 2006. "Statistical Properties Of Online Auctions," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 17(10), pages 1485-1493.
    • Handle: RePEc:wsi:ijmpcx:v:17:y:2006:i:10:n:s012918310600993x
    DOI: 10.1142/S012918310600993X
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    References listed on IDEAS

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    1. David Lucking‐Reiley & Doug Bryan & Naghi Prasad & Daniel Reeves, 2007. "Pennies From Ebay: The Determinants Of Price In Online Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 55(2), pages 223-233, June.
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    Cited by:

    1. Frantisek Slanina, 2014. "Complex temporal structure of activity in on-line electronic auctions," Papers 1401.2860, arXiv.org.
    2. Bolton, Gary E. & Ockenfels, Axel, 2014. "Does laboratory trading mirror behavior in real world markets? Fair bargaining and competitive bidding on eBay," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 143-154.
    3. Grabowski, Andrzej, 2007. "Interpersonal interactions and human dynamics in a large social network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 385(1), pages 363-369.

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