TY - JOUR
T1 - Competition, endogeneity and the winning bid
T2 - An empirical analysis of eBay auctions
AU - Onur, Ilke
AU - Velamuri, Malathi
PY - 2014/3
Y1 - 2014/3
N2 - Using a dataset of Texas Instruments (TI) calculator auctions on eBay, we estimate the impact 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. We introduce a novel instrumental variable, the closing interval between successive auctions. Estimates from the two-stage least squares (2SLS) regression are over three times those from an ordinary least squares (OLS) regression.
AB - Using a dataset of Texas Instruments (TI) calculator auctions on eBay, we estimate the impact 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. We introduce a novel instrumental variable, the closing interval between successive auctions. Estimates from the two-stage least squares (2SLS) regression are over three times those from an ordinary least squares (OLS) regression.
KW - EBay
KW - Endogeneity
KW - Online auctions
UR - http://www.scopus.com/inward/record.url?scp=84895735269&partnerID=8YFLogxK
U2 - 10.1016/j.infoecopol.2013.11.003
DO - 10.1016/j.infoecopol.2013.11.003
M3 - Article
AN - SCOPUS:84895735269
VL - 26
SP - 68
EP - 74
JO - Information Economics and Policy
JF - Information Economics and Policy
SN - 0167-6245
IS - 1
ER -