One of the biggest challenges in markets where products have ambiguous values (like fine art, specialty coffee, and wine) is to determine the structure of the market. As products in these markets are unique and values are private, it is difficult to determine its market structure using traditional methods. In this chapter, we present a method to determine the market structure of ambiguously valued products using bidding data from auctions. We create a sociomatrix of artists based on bidders revealed bidding preferences and uncover the market structure with artists as the unit of analysis. We demonstrate our approach using bidding data from an online auction of Modern Indian Art. This approach resulted in the extraction of a two-dimensional art market structure with color and price being the two dimensions. This chapter concludes with a discussion on the implications and limitations of our approach, and directions for future research.
Dass, M., Reddy, S.K., Newaz, M.T. and Reshadi, M. (2020), "Discovering Market Structure of Ambiguously Appraised Products from Bid History in Online Auctions", Iacobucci, D. (Ed.) Continuing to Broaden the Marketing Concept (Review of Marketing Research, Vol. 17), Emerald Publishing Limited, pp. 123-133. https://doi.org/10.1108/S1548-643520200000017013Download as .RIS
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