Title: Empirical Characterization of Bidding Behavior and Prices in pay-per-bid Auctions
Abstract: This paper studies the bidding behavior and its economic impact on transaction price in pay-per-bid auction. Collecting auction data on Big Deal.com, we use k-means cluster analysis to divide bidders into six categories. We find that nonaggressive opportunity strategy is an optimal one. Further, we analyze the impact of bidding strategies on the transaction price. We find that a higher percentage of aggressive participators and non-aggressive participators in an auction will result in higher price in that auction. We also find that a higher percentage of non-aggressive opportunists in an auction will result in lower price in that auction.
Publication Year: 2012
Publication Date: 2012-05-11
Language: en
Type: article
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