Economic Insights from Internet Auctions: A Survey
Working Paper 10076
DOI 10.3386/w10076
Issue Date
This paper surveys recent studies of Internet auctions. Four main areas of research are summarized. First, economists have documented strategic bidding in these markets and attempted to understand why sniping, or bidding at the last second, occurs. Second, some researchers have measured distortions from asymmetric information due, for instance, to the winner's curse. Third, we explore research about the role of reputation in online auctions. Finally, we discuss what Internet auctions have to teach us about auction design.
Published Versions
Bajari, Patrick and Ali Hortacsu. "Economic Insights from Internet Auctions." Journal of Economic Literature XLII (2004): 457-486.