Competition, endogenity and the winning bid : an empirical analysis of eBay
Files
(Published version)
Date
2011
Authors
Onur, I.
Velamuri, M.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Working paper
Citation
Statement of Responsibility
Conference Name
Abstract
Using a dataset of Texas Instruments (TI) calculator auctions on eBay, we analyze the effect of the number of bidders on the winning bid. We highlight the possible endogeneity associated with using the number of observed bidders. We tackle this problem by employing approaches involving instrumental variables. Our results suggest that the winning bid is an increasing function of the number of bidders when we treat the latter as exogenous. Endogenizing the number of bidders reverses the result; controlling for bidder participation, an increase in the number of bidders lowers the winning bid on average. Our results indicate the presence of a strong common value component in our data.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
Copyright [2011] Ilke Onur and Malathi Velamuri. Not for distribution without permission of author(s).