Decision Sciences
6 years ago

Online auction bidders with experience bid higher due to trust.

Journal of Organizational Computing and Electronic Commerce
Trust and experience in online auctions
Terence T. Ow, Brian I. Spaid, Charles A. Wood, Sulin Ba

Paper Summary

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The article explores how trust and experience affect bid levels in online auctions. By studying eBay auctions and conducting experiments, the researchers found that as bidders gain more experience, they tend to trust the auction platform more and place higher bids. Both selling and bidding experiences contribute to higher bid levels, with selling experience having a stronger impact. This study highlights the importance of institutional-based trust in online auctions and how it influences bidding behavior.