Late bidding and the auction price: evidence from eBay

Abstract

Purpose

The purpose of this study is two‐fold. First, this study aims to examine how late bidding may have an effect on the auction price. Second, this study seeks to investigate how this effect can be moderated by different types of auctions.

Design/methodology/approach

Data on computer CPUs were collected at eBay. A multiple regression analysis was performed to examine the effect of late bidding on price.

Findings

Empirical results indicate that late bidding decreases the auction price and the result is robust. This study, however, does not find support for the moderating role of the auction type (IPV vs APV) on the effect of late bidding on price.

Research limitations/implications

This paper selects an extremely competitive market with many sellers and bidders. Future research may expand this study by examining late bidding under different combinations of market structures (competitive vs less competitive) and auction models (IPV vs APV vs CV).

Originality/value

This paper is the first study that empirically tests the effect of late bidding on the auction price.

Citation

Hou, J. (2007), "Late bidding and the auction price: evidence from eBay", Journal of Product & Brand Management, Vol. 16 No. 6, pp. 422-428. https://doi.org/10.1108/10610420710823780