Bidder Experience In Online Auctions: Effects On Bidding Choices And Revenue

Abstract

This paper describes research to determine the effects of bidder experience on performance in online auctions. Choice of bid type, the timing of bids, and the price paid are all examined for very experienced and very inexperienced bidders. The study draws on information systems empirical research, traditional auction theory, the results of lab experiments involving "live" auctions not mediated by computers, and existing research on online auctions. The results indicate that bidder experience is related to timing of bids and choice of bid type, but not to revenue realized. These findings have implications for bidders and researchers.