Cross-bidding in simultaneous online auctions: Antecedents and consequences

Authors:
Varol O. Kayhan;James A. McCart;Anol Bhattacherjee
Affiliations:
Information Systems, University of South Florida - St. Petersburg, 140 Seventh Ave. South, St. Petersburg, FL 33701-5016, United States;Information Systems/Decision Sciences, University of South Florida, United States;Information Systems/Decision Sciences, University of South Florida, United States
Venue:
Information and Management
Year:
2010

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Abstract

Cross-bidding is a new strategy used in online auctions. The bidder simultaneously monitors several identical auctions, taking advantage of their price differential. We examined the determinants and outcomes of cross-bidding behavior and the contingent factors that shape it. Using empirical data, we demonstrated that cross-bidders can realize significant price discounts compared to non-cross-bidders; the number of experienced bidders in an auction market contributes to more cross-bidding; and this effect is positively moderated by market liquidity of the product being auctioned.