Featured Research

from universities, journals, and other organizations

Does mixing eBay and Facebook reduce bidding prices?

Date:
April 9, 2013
Source:
Journal of Consumer Research, Inc.
Summary:
In a competitive context, consumers are willing to pay significantly more to win when other bidders are unknown, according to a new study.

In a competitive context, consumers are willing to pay significantly more to win when other bidders are unknown, according to a new study in the Journal of Consumer Research.

"The tendency to assume that other consumers are similar to us is reversed when we're in a competitive, as opposed to cooperative, situation. This alters our aggressiveness toward others and the prices we are willing to bid in auctions," write authors David A. Norton (University of Connecticut), Cait Lamberton (University of Pittsburgh), and Rebecca Walker Naylor (Ohio State University).

Consumers tend to believe strangers are socially similar. This lowers aggressiveness toward others. But competitive contexts lead consumers to become more aggressive because they infer that others are different.

In a series of simulated online auctions, some consumers viewed profiles of other bidders that were manipulated to be either similar or different (based on demographic information like age, gender, and location), while others weren't given any information about other bidders. Consumers consistently bid less aggressively when they believed their competitors were similar rather than different. More interestingly, bidding aggressiveness and prices were much higher when other bidders were different or unknown.

Companies using auctions may want to resist the urge to link consumers to social media profiles. Consumers who discover they share traits with the people they're competing against may lower their aggressiveness, pushing prices down.

"Competitive contexts radically change the assumptions we make about other consumers compared to cooperative situations. When we compete, we want to go for the jugular -- and we won't do that when we know we're competing against consumers who are similar to us. But we behave more aggressively when there is no other information about other consumers because we assume they are different," the authors conclude.


Story Source:

The above story is based on materials provided by Journal of Consumer Research, Inc.. Note: Materials may be edited for content and length.


Journal Reference:

  1. David A. Norton, Cait Lamberton, and Rebecca Walker Naylor. The Devil You (Don’t) Know: Interpersonal Ambiguity and Inference Making in Competitive Contexts. Journal of Consumer Research, August 2013

Cite This Page:

Journal of Consumer Research, Inc.. "Does mixing eBay and Facebook reduce bidding prices?." ScienceDaily. ScienceDaily, 9 April 2013. <www.sciencedaily.com/releases/2013/04/130409131210.htm>.
Journal of Consumer Research, Inc.. (2013, April 9). Does mixing eBay and Facebook reduce bidding prices?. ScienceDaily. Retrieved April 23, 2014 from www.sciencedaily.com/releases/2013/04/130409131210.htm
Journal of Consumer Research, Inc.. "Does mixing eBay and Facebook reduce bidding prices?." ScienceDaily. www.sciencedaily.com/releases/2013/04/130409131210.htm (accessed April 23, 2014).

Share This



More Science & Society News

Wednesday, April 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Air Force: $4.2B Saved from Grounding A-10s

Air Force: $4.2B Saved from Grounding A-10s

AP (Apr. 23, 2014) Speaking about the future of the United States Air Force, Chief of Staff Gen. Mark Welsh says the choice to divest the A-10 fleet was logical and least impactful. (April 23) Video provided by AP
Powered by NewsLook.com
Nuclear-Level Asteroids Might Be More Common Than We Realize

Nuclear-Level Asteroids Might Be More Common Than We Realize

Newsy (Apr. 23, 2014) The B612 Foundation says asteroids strike Earth much more often than previously thought, and are hoping to build an early warning system. Video provided by Newsy
Powered by NewsLook.com
High Court to Hear Dispute of TV Over Internet

High Court to Hear Dispute of TV Over Internet

AP (Apr. 22, 2014) The future of Aereo, an online service that provides over-the-air TV channels, hinges on a battle with broadcasters that goes before the U.S. Supreme Court on Tuesday. (April 22) Video provided by AP
Powered by NewsLook.com
Is North Korea Planning Nuclear Test #4?

Is North Korea Planning Nuclear Test #4?

Newsy (Apr. 22, 2014) South Korean officials say North Korea is preparing to conduct another nuclear test, but is Pyongyang just bluffing this time? Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins