Seeing Value Through the Eyes of Others: Perceptions of Value and Rebidding in Online Auctions

Abstract

This paper addresses social interatcion and the formation of value beliefs in markets. It empirically examines value construction by analyzing rebidding behavior in online auctions, wherein individuals reassess the maximum price they would pay for a given product. Statistical analyses of more than 10,000 auctions containing more than 55,000 individual bids on the auction website eBay suggest that rebidding is positively associated with a lack of auction-internal price information and bidder inexperience. Analyses also suggest that engaging in rebidding is positively associated with an individual winning an auction. This work, therefore, helps to provide a deeper understanding about valuation, price formation, and the organization of markets. This work contributes to domains of research related to the construction of value and the emergence, evaluation, and legitimization of new products, services, and ideas.

Citation

Sands, D.B. (2022), "Seeing Value Through the Eyes of Others: Perceptions of Value and Rebidding in Online Auctions", Cattani, G., Deichmann, D. and Ferriani, S. (Ed.) The Generation, Recognition and Legitimation of Novelty (Research in the Sociology of Organizations, Vol. 77), Emerald Publishing Limited, Leeds, pp. 229-250. https://doi.org/10.1108/S0733-558X20220000077017