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Economic Insights from Internet Auctions: A Survey

  • Patrick Bajari
  • Ali Hortacsu

This paper surveys recent studies of Internet auctions. Four main areas of research are summarized. First, economists have documented strategic bidding in these markets and attempted to understand why sniping, or bidding at the last second, occurs. Second, some researchers have measured distortions from asymmetric information due, for instance, to the winner's curse. Third, we explore research about the role of reputation in online auctions. Finally, we discuss what Internet auctions have to teach us about auction design.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10076.

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Date of creation: Nov 2003
Date of revision:
Publication status: published as Bajari, Patrick and Ali Hortacsu. "Economic Insights from Internet Auctions." Journal of Economic Literature XLII (2004): 457-486.
Handle: RePEc:nbr:nberwo:10076
Note: IO
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