Bidder migration and its price effects on auctions

Mingfeng Lin, Wolfgang Jank

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Auctions are often not independent from each other, and the movement of bidders across different auctions is one of the key linkages. We propose different measures of bidder movements (which we call bidder migration in this paper) and how such migration affects the price outcome of later auctions. Moreover, we identify two potentially confounding effects: the learning effect where bidders learn to become more sophisticated bidders, hence driving down the price of later auctions; and the desperation effect where bidders, in a hope to obtain the product that they previous couldn't win, tend to increase the prices. We empirically investigated these effects using bidding history data from eBay and Generalized Linear Model specifications. We further discussed potential applications of bidder migration for online auction platforms, such as bidder segmentation, dynamic promotions, and shill bidder detection. These bidder migration measures can be provided to internet auction sellers as a value-added service.

Original languageEnglish (US)
Title of host publication14th Americas Conference on Information Systems, AMCIS 2008
Pages2900-2910
Number of pages11
StatePublished - Dec 1 2008
Event14th Americas Conference on Information Systems, AMCIS 2008 - Toronto, ON, Canada
Duration: Aug 14 2008Aug 17 2008

Publication series

Name14th Americas Conference on Information Systems, AMCIS 2008
Volume5

Other

Other14th Americas Conference on Information Systems, AMCIS 2008
CountryCanada
CityToronto, ON
Period8/14/088/17/08

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Keywords

  • Bidder learning
  • Bidder migration
  • Competition among auctions
  • Online auctions

ASJC Scopus subject areas

  • Computer Science Applications
  • Computer Networks and Communications
  • Library and Information Sciences
  • Information Systems

Cite this

Lin, M., & Jank, W. (2008). Bidder migration and its price effects on auctions. In 14th Americas Conference on Information Systems, AMCIS 2008 (pp. 2900-2910). (14th Americas Conference on Information Systems, AMCIS 2008; Vol. 5).