Excitement Up! Price Down! Measuring Emotions in Dutch Auctions

Recommended citation: Adam, M. T. P., Krämer, J., & Weinhardt, C. (2012). Excitement up! Price down! Measuring emotions in Dutch auctions. International Journal of Electronic Commerce, 17(2), pp.7-40, doi:10.2753/JEC1086-4415170201

17 Pages Posted: 6 Dec 2017

See all articles by Marc Adam

Marc Adam

University of Newcastle (Australia)

Jan Kraemer

University of Passau

Christof Weinhardt

Karlsruhe Institute of Technology

Date Written: January 1, 2012

Abstract

Recently, Internet auction sites have begun to compete in emotions by advertising the fun and excitement that bidders may experience during auction participation. The implicit conjecture inherent in these advertisements is that consumers derive a hedonic value from auction participation that makes exciting auctions more attractive and possibly induces bidders to stay active longer in the auction. We test this conjecture in a controlled economic laboratory experiment in which we also measure bidders’ physiological arousal in terms of heart rate and skin conductivity as proxies for their excitement during auction participation. In particular, we conduct a series of descending price (Dutch) auctions with different clock speeds and find that in fast Dutch auctions bidders (1) are more excited and (2) stay longer in the bidding process. Moreover, the unpleasant event of losing a Dutch auction is experienced more strongly than the rewarding event of winning. Our results show that bidders’ excitement is directly reflected in final prices, indicating that Internet auction site sponsors should carefully consider how the emotions elicited on their platforms affect bidding behavior.

Keywords: Auctions, Consumer Behavior, Dutch Auction, Emotions, Experiment

Suggested Citation

Adam, Marc and Kraemer, Jan and Weinhardt, Christof, Excitement Up! Price Down! Measuring Emotions in Dutch Auctions (January 1, 2012). Recommended citation: Adam, M. T. P., Krämer, J., & Weinhardt, C. (2012). Excitement up! Price down! Measuring emotions in Dutch auctions. International Journal of Electronic Commerce, 17(2), pp.7-40, doi:10.2753/JEC1086-4415170201. Available at SSRN: https://ssrn.com/abstract=3083411

Marc Adam (Contact Author)

University of Newcastle (Australia) ( email )

University Drive
Callaghan, NSW 2308
Australia

Jan Kraemer

University of Passau ( email )

Chair of Internet and Telecommunications Business
Dr.-Hans-Kapfinger-Str. 12
Passau, D-94036
Germany
+498515092580 (Phone)
+498525092582 (Fax)

HOME PAGE: http://www.kraemer.biz

Christof Weinhardt

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

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