Bramsen, Jens-Martin (2008): A pseudo-endowment effect in internet auctions.
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Although bidders in an internet auction do not obtain the actual ownership of the item during the auction, they still act according to an endowment eﬀect. In a unique data set of 17,000 Danish furniture auctions I ﬁnd that having the leading bid, both in terms of time and dollars, will aﬀect the bidders probability to rebid if outbid. Thus, expectations to own, i.e. “pseudo-endowment ”, seem to aﬀect bidders’ willingness to pay in a relative fast and straightforward manor. Gener- ally, these data therefore support that the reference point, from which we measure losses and gains, is closely related to expectations.
|Item Type:||MPRA Paper|
|Original Title:||A pseudo-endowment effect in internet auctions|
|Keywords:||Internet auctions, Reference-Dependent Preferences, Endowment Eﬀect, bidding behavior, eBay, WTP, Reference Point|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
D - Microeconomics > D0 - General > D01 - Microeconomic Behavior: Underlying Principles
D - Microeconomics > D4 - Market Structure and Pricing
|Depositing User:||Jens-Martin Bramsen|
|Date Deposited:||24. Apr 2009 00:51|
|Last Modified:||12. Feb 2013 16:23|
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