Can online auctions beat online catalogs?
ICIS '99 Proceedings of the 20th international conference on Information Systems
An empirical evidence of winner's curse in electronic auctions
ICIS '99 Proceedings of the 20th international conference on Information Systems
Effect of store design on consumer purchases: an empirical study of on-line bookstores
Information and Management
Implications of the Bidders' Arrival Process on the Design of Online Auctions
HICSS '00 Proceedings of the 33rd Hawaii International Conference on System Sciences-Volume 6 - Volume 6
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Managing Online Auctions: Current Business and Research Issues
Management Science
Note on Online Auctions with Costly Bid Evaluation
Management Science
An empirical study on predicting user acceptance of e-shopping on the Web
Information and Management
Literature derived reference models for the adoption of online shopping
Information and Management
Bidding strategies in online single-unit auctions: Their impact and satisfaction
Information and Management
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A sample of 416 online auctions was examined to determine the extent of overpayment (winner's curse) where online auctions and e-tail websites were linked together to form a parallel sales channel. The results indicated that 8.7% of the highest winning online auction bidders exceeded e-tail posted reference prices of identical retail merchandise found at the same website. Significantly, such bids exceeded the reference prices by a mean percentage dollar amount of 14.1% thus suggesting the existence of a winner's curse. The results also indicated that (1) there was a significant negative association between reference price and mean percentage dollar amount overbid; (2) there was a significant negative association between auction lot size and mean percentage dollar amount overbid; and (3) there was no significant association between overtime auctions and mean percentage dollar amount overbid. While manipulation of reference price and auction lot size might minimize winner's curse, erratic or irrational behavior (by online auction and/or e-tail websites) may lead to disinformation.