Reserve price and competing bids: reference points for product evaluation in online auctions?
Trautmann,S.T. van de Kuilen,G.
Trautmann,S.T.
van de Kuilen,G.
Abstract
With an increasing number of products sold in online auctions, the effect of reference points on consumers' product valuations has received much attention in the literature. Two potentially relevant factors affecting bidders' preferences are the sellers' reserve price and the competing bids by other bidders. The current evidence regarding these reference points is mixed. We argue that a focus on studying bids prevents a clear identification of reference point effects. Directly observing product valuations, in two experiments, we find that willingness to pay in online auctions is affected by both reserve prices and competing bids, supporting the constructed values paradigm
Description
Date
2015
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Volume Title
Publisher
Research Projects
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Keywords
online auctions, reference points
Citation
Trautmann, S T & van de Kuilen, G 2015, 'Reserve price and competing bids : reference points for product evaluation in online auctions?', Journal of Consumer Behaviour, vol. 14, no. 4, pp. 285-296. https://doi.org/10.1002/cb.1519