Empirical Research of Jump Bidding in Online Ascending Auction

Abstract

Abstract:

Jump bidding is an interesting phenomenon in an ascending auction. Overseas scholars have provided signaling model, impatience model and strategic models to explain the behaviour. Based on the former two models, this paper empirically studies jump bidding behaviours in ascending auctions of Taobao from three aspects. They are the timing of jump bidding, the magnitude of bid increase and the effect of competition level on jump. The results show that the timing of jump bidding is regularly distributed as “J” type, which does not confirm the explanations of both signaling and impatience models. However, the magnitude of bid increase and the effect of competition satisfy the explanations of the two models on the whole. This paper examines the applicability of two classic models in the situation of China, and provides decision support for Chinese online consumers who want to give jump bidding.

Key words: jump bidding, online ascending auction, signaling, impatience

Ye Wen, Zhan Wenjie, Zou Yi, Yang Jie. Empirical Research of Jump Bidding in Online Ascending Auction[J]. , 2017, 29(4): 83-90.

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