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Who Wins on eBay: An Analysis of Bidders and Their Bid Behaviours 

Authors: Stephen C. Hayne a;  C. A. P. Smith b; Leo R. Vijayasarathy a
Affiliations:   a College of Business, Colorado State University,
b Colorado State University,
DOI: 10.1080/1019678032000135536
Publication Frequency: 4 issues per year
Published in: journal Electronic Markets, Volume 13, Issue 4 November 2003 , pages 282 - 293
Formats available: PDF (English)

The circumstances under which this title is published have changed:

Reason for change: Change of Publisher
Now published by: Springer
Date of change: 2009

View Article: View Article (PDF) View Article (PDF)


Abstract

Online auctioning is one of the more successful business innovations on the Web. The auction format at eBay, the leading online auctioneer, has some unique characteristics including a fixed closing time for the bids and the use of a proxy bidding system that that is capable of acting as a bidder's agent. These features, coupled with third party products such as sniping software, have introduced novel bidder behaviours that may not occur in more traditional auction formats. In an attempt to study these behaviours, we collected and analysed data from over 11,000 eBay auctions. This paper presents the results of the analyses including descriptive information about the auctions and the classification of bids and bidders based on bid timing, frequency and strategy employed. The different types of bidders and their success rates offer insights into the nature of bidder participation in eBay auctions. In addition, chi-square analyses reveal significant differences among the bidding strategies with respect to auction outcome. Implications of the findings and a framework to guide future research on online auctions are presented.
Keywords: eBay; online auctions; bidder behaviour
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