Snipe Bidding Behavior in Ebay Auctions

2011, International Journal of Electronic Marketing and Retailing, Vol. 4, No. 1, 16-29.

26 Pages Posted: 23 Jul 2010 Last revised: 10 Aug 2014

See all articles by Füsun F. Gönül

Füsun F. Gönül

Slippery Rock University

Peter T. L. Popkowski Leszczyc

University of Queensland - Business School

Date Written: December 1, 2009

Abstract

Our research investigates what factors make snipe bidding more likely, whether sniping pays, and how an auction can be designed to minimize sniping. We estimate sniping probability in eBay auctions using multivariate models to examine novel datasets compiled from auctions of the Norelco electric razor and the Sony PlayStation2. Our main results reveal that the winner of an auction is more likely to be a snipe bidder and that a lower ending price increases the likelihood that the winner of an auction is a snipe bidder, everything else held constant. We find that experienced bidders are more likely to engage in sniping behavior. In addition, we find that an auction designer or a seller can discourage snipe bidding by setting a longer duration and/or a lower (or no) reserve price.

Keywords: choice, data collection, estimation, online auctions, probability, snipe bidding

JEL Classification: D12, M39

Suggested Citation

Gonul, Fusun Feride and Popkowski Leszczyc, Peter T. L., Snipe Bidding Behavior in Ebay Auctions (December 1, 2009). 2011, International Journal of Electronic Marketing and Retailing, Vol. 4, No. 1, 16-29.. Available at SSRN: https://ssrn.com/abstract=1647357

Fusun Feride Gonul

Slippery Rock University ( email )

Slippery Rock, PA 16057-1399
United States

Peter T. L. Popkowski Leszczyc (Contact Author)

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
52
Abstract Views
687
rank
381,798
PlumX Metrics