Does Higher Transparency Lead to More Search in Online Auctions?

Posted: 23 Feb 2013  

Ernan Haruvy

Independent

Peter T. L. Popkowski Leszczyc

University of Alberta - Department of Marketing, Business Economics & Law

Yu Ma

Independent

Date Written: February 22, 2013

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

Suggested Citation

Haruvy, Ernan and Popkowski Leszczyc, Peter T. L. and Ma, Yu, Does Higher Transparency Lead to More Search in Online Auctions? (February 22, 2013). Production and Operations Management, 2013; University of Alberta School of Business Research Paper No. 2013-16. Available at SSRN: https://ssrn.com/abstract=2222677

Ernan Haruvy

Independent ( email )

Peter T. L. Popkowski Leszczyc (Contact Author)

University of Alberta - Department of Marketing, Business Economics & Law ( email )

Edmonton, Alberta T6G 2R6
Canada
780-492-1866 (Phone)
780-492-3325 (Fax)

HOME PAGE: http://www.bus.ualberta.ca/ppopkowski/

Yu Ma

Independent

No Address Available

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