Impact of ending rules in online auctions: The case of

Ilke Onur, Kerem Tomak

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)


This paper examines the impact of sellers' choice of auction parameters on the level of their revenues using data from's Playstation 2 system auctions. Our study specifically highlights the impact of the ending rule. We introduce a new variable called Winning Bid Ratio (WBR), and use it as a proxy for seller revenues. WBR is the ratio of the winning bid of an auction to the buy price offered by the seller. We find that choosing a high bid increment and including a shipping price decreases the WBR. Alternatively, lower number of bids and choosing a shorter auction length have a positive effect on the WBR. On the whole, the ending rule has a negative effect on the WBR, which is in accord with the theoretical predictions in the literature. However, we also find variations in the results for the effect of ending rule when we divide the data into two groups consisting of high and low-value auctions.

Original languageEnglish
Pages (from-to)1835-1842
Number of pages8
JournalDecision Support Systems
Issue number3
Publication statusPublished - Dec 2006
Externally publishedYes


  • Auction ending rules
  • Electronic markets
  • Online auctions


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