Social Networks Among Auction Bidders: The Role of Key Bidders and Structural Properties on Auction Prices

Social Networks 37 (2014) 14-28

Posted: 17 Nov 2015 Last revised: 2 Jun 2016

See all articles by Mayukh Dass

Mayukh Dass

Texas Tech University - Area of Marketing

Srinivas K. Reddy

Singapore Management University - Lee Kong Chian School of Business

Dawn Iacobucci

Vanderbilt University - Marketing; Vanderbilt University - Marketing

Date Written: 2014

Abstract

Auctions have been studied extensively as an economic marketplace. The economist’s focus is on modeling final sales prices, but the processes that give rise to those outcomes are rarely studied in great detail. This research is intended to provide that complementary perspective. We show how the interactions between bidders in an auction unfold in a dynamic pattern of bids and counter-bids, and thereby over the duration of an auction, create a network structure. The auction network contributes significantly to models of price dynamics and the network predicts final sales prices better than economic (non-network) indicators alone. In addition, network analyses are useful in identifying the key bidders whose actions seem to exert disproportionate influence on other bidders and the final sales prices. Furthermore, the key bidders may be identified very early in an auction process, which has practical implications for the auction house managers and for other bidders.

Keywords: Online auctions, Dynamic pricing, Bidders, Networks

Suggested Citation

Dass, Mayukh and Reddy, Srinivas K. and Iacobucci, Dawn and Iacobucci, Dawn, Social Networks Among Auction Bidders: The Role of Key Bidders and Structural Properties on Auction Prices (2014). Social Networks 37 (2014) 14-28, Available at SSRN: https://ssrn.com/abstract=2691565 or http://dx.doi.org/10.2139/ssrn.2691565

Mayukh Dass (Contact Author)

Texas Tech University - Area of Marketing ( email )

Box-42101
Rawls College of Business
Lubbock, TX Lubbock 79409
United States
806 742 1924 (Phone)

HOME PAGE: http://www.mdass.com

Srinivas K. Reddy

Singapore Management University - Lee Kong Chian School of Business ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

Dawn Iacobucci

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

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