Public interactions of auction participants and their impact on online auctions of nonperishable experience goods

Author:

Jaiswal MayankORCID

Abstract

PurposeThe Internet has introduced new ways of conducting business. Online auction of nonperishable experience goods (NPEG) items, which are generally rare, expensive and durable and need to be experienced to be valued, is one area that is undergoing significant change. Online auction platforms are encouraging participants to interact publicly in a social media type comment format. This paper investigates how such public interactions impact the auction outcomes of NPEG.Design/methodology/approachAuction records of vintage automobiles sold between 2015 and 2023 on one of the biggest online auction platforms in the USA were collected. The dataset contains multiple variables per record such as winning bid price, number of comments by sellers and browsers and various details of the automobile, for example brand, vintage and mileage. Ordinary least squares was utilized to analyze close to 42,000 records in the dataset.FindingsThe paper found that comments in general are positively correlated with the winning bid; it also found that online buyers value browser comments higher than seller comments. Furthermore, the relationship between vintage and origin country and winning bid is enhanced by browser comments.Originality/valueThis research furthers theory on two fronts. Firstly, we analyze how auction outcomes are impacted when buyers, casual observers and sellers interact with each other publicly when the auction is ongoing. To the best of the author's knowledge, this is one of the first studies that delve into participant interactions in online ongoing auctions. Secondly, we investigate how potential buyers utilize participant interaction information to guide their decisions about the value of NPEG.

Publisher

Emerald

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