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Exploring the Effect of Bidding Mechanisms in Online Penny Auction

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Group Decision and Negotiation. A Process-Oriented View (GDN 2014)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 180))

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Abstract

Penny auction, an emerging popular auction mode, requires bidders to pay for each bid. Since its mechanism is different from traditional ones, the results of past studies may not be applied to this auction model. The goal of this study is to explore the drivers of engaging in penny auction. Perceived fairness and perceived value are the major cognitions we investigated. We inferred that certain mechanisms adopted by penny auctions may enhance perceived value and fairness of penny auction. An online experiment was implemented to examine the proposed hypotheses. The results confirmed most of our hypotheses – (1) intention to bid is a function of perceived hedonic value, transaction utility, and perceived price fairness and (2) bidding mechanisms have effects on bidders’ perceptions. Implications for researchers and practitioners are also provided.

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Author information

Authors and Affiliations

  1. Undergraduate Program of Business Administration, National Taiwan Normal University, No. 162, He-ping East Road, Section 1, Taipei, Taiwan, 10610

    Hsiangchu Lai

  2. Department of Information Management, National Sun Yat-sen University, No. 70, Lien-Hai Road, Kaohsiung, Taiwan, 80424

    Jack Shih-Chieh Hsu & Hao-Min Tu

Authors
  1. Hsiangchu Lai
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  2. Jack Shih-Chieh Hsu
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  3. Hao-Min Tu
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Editor information

Editors and Affiliations

  1. Faculté d’Informatique IRIT, Toulouse 1 Capitole University, Toulouse, France

    Pascale Zaraté

  2. InterNeg Research Centre, Concordia University, Montreal, QC, Canada

    Gregory E. Kersten

  3. University of Liverpool, and Universidad de la Frontera, Temuco, Chile

    Jorge E. Hernández

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© 2014 Springer International Publishing Switzerland

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Lai, H., Hsu, J.SC., Tu, HM. (2014). Exploring the Effect of Bidding Mechanisms in Online Penny Auction. In: Zaraté, P., Kersten, G.E., Hernández, J.E. (eds) Group Decision and Negotiation. A Process-Oriented View. GDN 2014. Lecture Notes in Business Information Processing, vol 180. Springer, Cham. https://doi.org/10.1007/978-3-319-07179-4_5

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  • DOI: https://doi.org/10.1007/978-3-319-07179-4_5

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-07178-7

  • Online ISBN: 978-3-319-07179-4

  • eBook Packages: Computer ScienceComputer Science (R0)

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