n Management Dynamics : Journal of the Southern African Institute for Management Scientists - Investigating the extent to which auction information determines the success of online auctions

Volume 19, Issue 3
  • ISSN : 1019-567X



Online auctions are an attractive non-store buying method for many buyers and a selling option for many sellers. In an online auction, sellers must provide a description of the item they want to sell and specify a starting bid amount, bid increment, and so on. Buyers then use this information to base their decisions to bid or not to bid on the item. The research question addressed in this study is: to what extent does information on an auction page determine the success of an online auction (item sold)? To address the research question, information on 2 000 auctions ending in May 2010 was directly obtained from BidorBuy, a major South African third-party online auction site. A multiple logistic regression model was used to investigate the extent to which various types of information contribute to the probability of an auction ending successfully (item sold). The results of the study indicate that the condition of an item, together with the bid step amount, influence the outcome of the auctions, as well as the number of positive ratings of the seller, the seller-defined payment options, and the size of the starting bid.

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