Reputation in repeated pay-to-bid auctions

Anqi Wu, H. Dharma Kwon, Sung Won Kim

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This study primarily focuses on pay-to-bid auctions in which bidders pay a fixed fee for each bid to increase the price and explores the reputation of bidders within the auctions. The reputation effects can be discovered from sample observations in pay-to-bid auction websites. Pay-to-bid auctions are highly susceptible to manipulative behaviors by an aggressive bidder. To explain the phenomenon, a basic model in which two bidders take part in a series of pay-to-bid auctions is developed and an extension of a multiplayer model builds on the basic model. The question of an optimal auction from the auctioneer's standpoint, in an asymmetric setting, is addressed. It is expected to theoretically show that the results from previous symmetric pay-to-bid auction models do not carry over to repeated auctions when one of the bidders is endowed with a reputation for bidding aggressively.

Original languageEnglish (US)
Title of host publicationAmericas Conference on Information Systems 2018
Subtitle of host publicationDigital Disruption, AMCIS 2018
PublisherAssociation for Information Systems
ISBN (Print)9780996683166
StatePublished - 2018
Event24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018 - New Orleans, United States
Duration: Aug 16 2018Aug 18 2018

Publication series

NameAmericas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018

Other

Other24th Americas Conference on Information Systems 2018: Digital Disruption, AMCIS 2018
Country/TerritoryUnited States
CityNew Orleans
Period8/16/188/18/18

Keywords

  • Aggressive bidding behaviors
  • Game theory
  • Incomplete information
  • Pay-to-bid auctions
  • Reputation

ASJC Scopus subject areas

  • Information Systems

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