Competition, endogeneity and the winning bid: An empirical analysis of eBay auctions

Ilke Onur; Malathi Velamuri

doi:10.1016/j.infoecopol.2013.11.003

Competition, endogeneity and the winning bid: An empirical analysis of eBay auctions

Ilke Onur, Malathi Velamuri

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	68-74
Number of pages	7
Journal	Information Economics and Policy
Volume	26
Issue number	1
DOIs	https://doi.org/10.1016/j.infoecopol.2013.11.003
Publication status	Published - Mar 2014
Externally published	Yes

Keywords

EBay
Endogeneity
Online auctions

Access to Document

10.1016/j.infoecopol.2013.11.003Licence: In Copyright

Cite this

@article{7b8f7fb2316546ae98c715a08f00f719,

title = "Competition, endogeneity and the winning bid: An empirical analysis of eBay auctions",

abstract = "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.",

keywords = "EBay, Endogeneity, Online auctions",

author = "Ilke Onur and Malathi Velamuri",

year = "2014",

month = mar,

doi = "10.1016/j.infoecopol.2013.11.003",

language = "English",

volume = "26",

pages = "68--74",

journal = "Information Economics and Policy",

issn = "0167-6245",

publisher = "Elsevier B.V.",

number = "1",

}

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

SN - 0167-6245

VL - 26

SP - 68

EP - 74

JO - Information Economics and Policy

JF - Information Economics and Policy

IS - 1

ER -

Competition, endogeneity and the winning bid: An empirical analysis of eBay auctions

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this