47 Pages Posted: 16 Nov 2003
Date Written: November 2003
This paper surveys recent studies of Internet auctions. Four main areas of research are summarized. First, economists have documented strategic bidding in these markets and attempted to understand why sniping, or bidding at the last second, occurs. Second, some researchers have measured distortions from asymmetric information due, for instance, to the winner's curse. Third, we explore research about the role of reputation in online auctions. Finally, we discuss what Internet auctions have to teach us about auction design.
Suggested Citation: Suggested Citation
Bajari, Patrick and Hortacsu, Ali, Economic Insights from Internet Auctions: A Survey (November 2003). NBER Working Paper No. w10076. Available at SSRN: https://ssrn.com/abstract=467544