Topic:' '&' ' Bidding Frenzy: How the Speed of Competitor Reaction Influences Product

Valuations in Auctions.

Speaker:' '&' ' Peter T.L. Popkowski Leszczyc, Associate Professor of Marketing, University of Alberta.

Time:' '&' ' 3:45-5:00pm, April 21th, 2010.

Location:' '&' ' ' '&' ' Room217, New Building of GSM, Peking University.

Abstract:

This paper examines the effects of competitive interaction among consumers on their product valuations in open ascending-bid (English) auctions.' '&' ' We propose that, as a result of the interactive nature of such auctions, bidders may experience a mental state, which we refer to as *bidding frenzy*, that is characterized by a high level of arousal or excitement, a sense of competition, and a strong desire to win.' '&' ' Our focus is on one key aspect of the intensity of competition in an auction on consumers' '&' 'rsquo; product valuations: the frequency of arrival of others' '&' 'rsquo; bids.' '&' ' The effects of bidding frenzy on consumers' '&' 'rsquo; product valuations were examined in five laboratory experiments. We find that an auction participant' '&' 'rsquo;s experienced level of bidding frenzy increases as the pace at which others submit bids increases.' '&' ' This causes consumers to value the auctioned product more highly.

Welcome to attend!

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