The Effect of Experience on Internet Auction Bidding Dynamics

Marketing Letters, Vol. 20, pp. 245-261

Posted: 8 Aug 2010

See all articles by Xin Wang

Xin Wang

Brandeis University

Ye Hu

University of Houston - Bauer College of Business

Date Written: August 6, 2009

Abstract

On the basis of the bidding history of a panel of new eBay bidders, we examine the impact of different types of experiences on bidding behavior evolution. Accounting for unobserved bidder heterogeneity, the results indicate that losing experiences make the bidders’ bidding behavior evolve toward the normative predictions of auction theory, in that they submit fewer bids and bid later. Winning experiences, however, do not have such an effect. Moreover, the experience effect pertains to the bidder’s entire previous bidding experience regardless of product categories. We also assess the potential bias introduced by using feedback ratings (compared with actual participation) as experience measures.

Keywords: Internet auction, Asymmetric experience effects, Bidding behavior

Suggested Citation

Wang, Xin and Hu, Ye, The Effect of Experience on Internet Auction Bidding Dynamics (August 6, 2009). Marketing Letters, Vol. 20, pp. 245-261, Available at SSRN: https://ssrn.com/abstract=1654517

Xin Wang (Contact Author)

Brandeis University ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

Ye Hu

University of Houston - Bauer College of Business ( email )

Houston, TX 77204-6021
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
374
PlumX Metrics