AN ANALYSIS OF STRATEGIC BEHAVIOR INeBAY AUCTIONS

Raul Gonzalez (), Kevin Hasker () and Robin Sickles
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Raul Gonzalez: Facultad de Economías, Universidad Autónoma de Nuevo León, Monterrey, N.L. México. A.P. 288, Mexico
Kevin Hasker: Department of Economics, Bilkent University, 06800 Bilkent, Ankara, Turkey

The Singapore Economic Review (SER), 2009, vol. 54, issue 03, 441-472

Abstract: A relatively new type of panel data analysis is becoming more and more topical in the applied econometrics literature as auction mechanisms are being explored in more depth. The typical data utilized in such studies involves repeated measures of auction outcomes, where the variable of interest involves order statistics from the sample of bids from many bids on completed auctions for a particular commodity. This article presents structural estimates of bidding behavior in eBay computer monitor auctions. We exploit characteristics of such repeated measures to analyze the efficiency of private value auctions for a relatively homogeneous good, computer monitors sold on eBay. We discuss how outcomes of the auction mechanism can be analyzed and their equilibrium outcomes assessed and evaluate the consumer surplus that is generated from such auctions. Particular attention is given to the collection of the eBay data from data recovery protocols that monitor in real time and in relative detail, characteristics of a particular auction with heterogeneity controls for different types of monitors and for different reputation effects of the auctioneer. Among other findings, our results point to a rejection of the use of Jump Bidding (Avery, 1998) or "Snipe or War" bidding (Roth and Ockenfels, 2002). We also find that longer auctions only have a small effect on price and experienced auctioneers respond to this incentive.

Keywords: Internet auctions; English auctions; structural econometrics; simulated nonlinear least squares; C1; C7; D44; L1 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S0217590809003422

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