Bidding Behaviors in Charity Auctions

Forthcoming in Marketing Letters

20 Pages Posted: 20 Mar 2013 Last revised: 29 Sep 2013

See all articles by Peter T. L. Popkowski Leszczyc

Peter T. L. Popkowski Leszczyc

University of Queensland - Business School

Chun Qiu

McGill University - Desautels Faculty of Management

Shenyu Li

Shanghai University of Finance and Economics

Michael H. Rothkopf

Rutgers University, Piscataway

Date Written: September 13, 2013

Abstract

This paper investigates the importance of bidder types and product types in online charity auctions. Through a large-scale controlled field experiment, the authors identify charitable and non-charitable bidders, and investigate bidding activities in charity and non-charity auctions. Results show that charitable bidders are willing to pay a significant premium in charity auctions, and bid more persistently, continuing to bid in future charity auctions even after losing one. In addition, through the use of a covert agent bidder, this study provides evidence that charitable bidders voluntarily drive up the price in charity auctions, regardless of whether they win the auction. Finally, the authors find that higher value products attain a lower charitable premium relative to their retail value, consistent with diminishing returns to giving.

Keywords: Charity auctions, charitable bidders, field experiment

JEL Classification: D12, M14, M39, C93

Suggested Citation

Popkowski Leszczyc, Peter T. L. and Qiu, Chun and Li, Shenyu and Rothkopf, Michael H., Bidding Behaviors in Charity Auctions (September 13, 2013). Forthcoming in Marketing Letters. Available at SSRN: https://ssrn.com/abstract=2235983 or http://dx.doi.org/10.2139/ssrn.2235983

Peter T. L. Popkowski Leszczyc (Contact Author)

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Chun Qiu

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. W
Montreal, Quebec H3A 1G5
Canada

Shenyu Li

Shanghai University of Finance and Economics ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

Michael H. Rothkopf

Rutgers University, Piscataway ( email )

Rutgers Business School and RUTCOR
Rutcor Modular Bldg, Room 121
Piscataway, NJ 08854
United States
732-445-0266 (Phone)
732-445-5472 (Fax)

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