Patterns of building behavior in online auctions: analyses of eBay Car Auctions in Three Price Groups

Abstract

This paper analyzes the bidding behaviour and psychology of making buying decisions in online auction using the example of the biggest online-auction server- eBay, with almost no barriers to entry of online auctions. Users may log in and freely move, observe auctions and then make decision whether join it, bid, try to win or not or just stop their actions on observing. Users logged are from all over the world, from different cultures, societies, have different perception of value and different standards of evaluating of products. All bidders engaged in one auction mix all their attributes and characteristics and make that specific auction different, abnormal or unexplainable in terms of popular findings and analyses available. For them eBay was created and they shape the auction and decide what is sold and bought. Data collection can be conducted without any restrictions and payments, based only on own perception of what is needed and useful for calculations that will be done. This paper is mainly focused on reviewing the theory of auction bidding, on specific behaviors that may be present in each phase of auction, and are typical for online auctions, and on connection with the area of economy.