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 September 21, 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 September 21, 2014).

Share This



More Science & Society News

Sunday, September 21, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Will Climate Rallies Spur Change?

Will Climate Rallies Spur Change?

Newsy (Sep. 21, 2014) Organizers of the People's Climate March and other rallies taking place in 166 countries hope to move U.N. officials to action ahead of their summit. Video provided by Newsy
Powered by NewsLook.com
Thousands March in NYC Over Climate Change

Thousands March in NYC Over Climate Change

AP (Sep. 21, 2014) Accompanied by drumbeats, wearing costumes and carrying signs, thousands of demonstrators filled the streets of Manhattan and other cities around the world on Sunday to urge policy makers to take action on climate change. (Sept. 21) Video provided by AP
Powered by NewsLook.com
Sierra Leone in Lockdown to Control Ebola

Sierra Leone in Lockdown to Control Ebola

AP (Sep. 21, 2014) Sierra Leone residents remained in lockdown on Saturday as part of a massive effort to confine millions of people to their homes in a bid to stem the biggest Ebola outbreak in history. (Sept. 20) Video provided by AP
Powered by NewsLook.com
Climate Change Rally Held in India Ahead of UN Summit

Climate Change Rally Held in India Ahead of UN Summit

AFP (Sep. 20, 2014) Some 125 world leaders are expected to commit to action on climate change at a UN summit Tuesday called to inject momentum in struggling efforts to tackle global warming. Duration: 00:41 Video provided by AFP
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