Reserve price and competing bids: reference points for product evaluation in online auctions?

Research output: Contribution to journalArticleScientificpeer-review

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
Original languageEnglish
Pages (from-to)285-296
JournalJournal of Consumer Behaviour
Volume14
Issue number4
DOIs
Publication statusPublished - 2015

Keywords

  • online auctions
  • reference points

Cite this

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title = "Reserve price and competing bids: reference points for product evaluation in online auctions?",
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",
keywords = "online auctions, reference points",
author = "S.T. Trautmann and {van de Kuilen}, G.",
year = "2015",
doi = "10.1002/cb.1519",
language = "English",
volume = "14",
pages = "285--296",
journal = "Journal of Consumer Behaviour",
issn = "1472-0817",
publisher = "Wiley",
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}

Reserve price and competing bids : reference points for product evaluation in online auctions? / Trautmann, S.T.; van de Kuilen, G.

In: Journal of Consumer Behaviour, Vol. 14, No. 4, 2015, p. 285-296.

Research output: Contribution to journalArticleScientificpeer-review

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AB - 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

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KW - reference points

U2 - 10.1002/cb.1519

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JO - Journal of Consumer Behaviour

JF - Journal of Consumer Behaviour

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