The Impact of Jump Bidding in Online Auctions

Marketing Letters

20 Pages Posted: 30 Aug 2010 Last revised: 10 Mar 2013

See all articles by Yongfu He

Yongfu He

Monash University

Peter T. L. Popkowski Leszczyc

University of Queensland - Business School

Date Written: January 15, 2013

Abstract

This paper reports findings of two field studies, conducted on a local online auction website, that compare bidding strategies in charity and non-charity auctions, focusing on the extent of jump bidding at different stages of auctions. Results indicate that jump bidding is negatively correlated with bidder entry and positively associated with ending prices. These correlations are greatest during the beginning stage of auctions and are substantially larger for charity auctions than for non-charity auctions. Additionally, early-stage jump bidding occurred more often in charity auctions (consistent with bidders trying to drive up prices in charity auctions), ending-stage jump bidding was more frequent in non-charity auctions (possibly used strategically to win the auction). Further, frivolous products tended to sell at a higher proportion of retail value in charity auctions, providing a replication of the results of previous researchers but in a field setting.

Keywords: Auctions, field study, jump bidding, charity auctions

Suggested Citation

He, Yongfu and Popkowski Leszczyc, Peter T. L., The Impact of Jump Bidding in Online Auctions (January 15, 2013). Marketing Letters. Available at SSRN: https://ssrn.com/abstract=1667157 or http://dx.doi.org/10.2139/ssrn.1667157

Yongfu He

Monash University ( email )

Sir John Monash Road
Caulfield East, Victoria 3163
Australia

Peter T. L. Popkowski Leszczyc (Contact Author)

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

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