G-2007-95
An Empirical Analysis of Jump Bidding in Internet Auctions
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This paper attempts to shed an empirical light on so-called jump bidding in ascending auctions. There is a jump when a participant in an auction outbids the last proposal by more than what is required by the rule of the auction. Using a data set from eBay, we find that the initial price, the selling price and the average degree of participant expertise are the main drivers of jump bidding.
Published December 2007 , 18 pages
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