Does Higher Transparency Lead to More Search in Online Auctions?

Production and Operations Management, Forthcoming

35 Pages Posted: 25 Feb 2012

See all articles by Ernan Haruvy

Ernan Haruvy

University of Texas at Dallas - Naveen Jindal School of Management

Peter T. L. Popkowski Leszczyc

University of Queensland - Business School

Yu Ma

Independent

Date Written: February 2, 2012

Abstract

In a controlled field experiment, we examine pairs of auctions for identical items under different conditions. We find that auction design features that are under the control of the auctioneer - including information transparency, number of simultaneous auctions, and the degree of overlap between simultaneous auctions - affect bidder search and choice. Clickstream data show that a significant relationship between information transparency and price dispersion can be linked to search. Specifically, the effect of information transparency on price dispersion is fully mediated by lookup behavior. Combining these findings, we make auction design recommendations regarding the provision of product and value information.

Keywords: Auctions, field experiments, search, clickstream data

JEL Classification: C93, D12, D44, D83, M30, M34

Suggested Citation

Haruvy, Ernan and Popkowski Leszczyc, Peter T. L. and Ma, Yu, Does Higher Transparency Lead to More Search in Online Auctions? (February 2, 2012). Production and Operations Management, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1998467

Ernan Haruvy

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Peter T. L. Popkowski Leszczyc (Contact Author)

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Yu Ma

Independent

No Address Available

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