Excitement up! Price down! Measuring emotions in Dutch auctions

International Journal of Electronic Commerce

Volumn 17, Issue 2, 2012, Pages 7-40

  Adam, Marc ^a   Krãmer, Jan ^a   Weinhardt, Christof ^b  

^a KARLSRUHE INSTITUTE OF TECHNOLOGY   (Germany)

^b UNIVERSITY OF KARLSRUHE   (Germany)

Author keywords

Auction experiments; behavioral economics; bidding; consumer behavior; Dutch auction; emotions; excitement; Internet auctions; online auctions

Indexed keywords

EID: 84877977158     PISSN: 10864415     EISSN: None     Source Type: Journal    
DOI: 10.2753/JEC1086-4415170201     Document Type: Article

References (64)

1. Adam, M.T.P.; Gamer, M.; Krämer, J.; Weinhardt, C. Measuring emotions in electronic markets. In Proceedings of the 2011 International Conference on Information Systems. Shanghai: Association for Information Systems, 2011.
2. Adam, M.T.P.; Hagenau, M.; Neumann, D.; and Weinhardt, C. Emotions in electronic auctions: A physio-economic approach on information systems. In W. Golden, T. Acton, K. Conboy, H. van der Heijden, and V. Tuunainen (eds.), Proceedings of the 16th European Conference on Information Systems. Galway, Ireland: Association for Information Systems, 2008, pp. 315-325.
3. Adam, M.T.P.; Krämer, J.; Jähnig, C.; Seifert, S.; and Weinhardt, C. Understanding auction fever: A framework for emotional bidding. Electronic Markets, 21, 3 (2011), 197-207.
4. Andreassi, J.L. Psychophysiology, Human Behavior & Physiological Responses, 5th ed. Mahwah, NJ: Lawrence Erlbaum, 2007.
5. Angst, C.M.; Agarwal, R.; and Kuruzovich, J. Bid or buy? Individual shopping traits as predictors of strategic exit in on-line auctions. International Journal of Electronic Commerce, 13, 1 (fall 2008), 59-84.
6. Ariely, D., and Loewenstein, G. The heat of the moment: The effect of sexual arousal on sexual decision making. Journal of Behavioral Decision Making, 19, 2 (2006), 87-98.
7. Ariely, D., and Simonson, I. Buying, bidding, playing, or competing? Value assessment and decision dynamics in online auctions. Journal of Consumer Psychology, 13 (2003), 113-123.
8. Astor, P.J.; Adam, M.T.P.; Jähnig, C.C.; and Seifert, S. Measuring regret. In V. Tuuanainen, J. Nadhakumar, M. Rossi, and W. Soliman (eds.), Proceedings of the 19th European Conference on Information Systems. Helsinki: Association for Information Systems, 2011, pp. 1129-1140.
9. Barrot, C.; Albers, S.; Skiera, B.; and Schäfers, B. Vickrey vs. eBay: Why second-price sealed-bid auctions lead to more realistic price-demand functions. International Journal of Electronic Commerce, 14, 4 (summer 2010), 7-38.
10. Bechara, A., and Damasio, A.R. The somatic marker hypothesis: A neural theory of economic decision. Games and Economic Behavior, 52, 2 (2005), 336-372.
11. Benedek, M., and Kaernbach, C. Decomposition of skin conductance data by means of nonnegative deconvolution. Psychophysiology, 47, 4 (2010), 647-658.
12. Berntson, G.G.; Quigley, K.S.; and Lozano, D. Cardiovascular psychophysiology. In J.T. Cacioppo, L.G. Tassinary, and G.G. Berntson (eds.), Handbook of Psychophysiology, 3d ed. Cambridge: Cambridge University Press, 2007, pp. 182-210.
13. Boucsein, W. Electrodermal Activity. Berlin: Springer, 1992.
14. Bradley, M.M.; Miccoli, L.; Escrig, M.A.; and Lang, P.J. The pupil as a measure of emotional arousal and autonomic activation. Psychophysiology, 45, 4 (2008), 602-607.
15. Cacioppo, J.T.; Tassinary, L.G.; and Berntson, G.G. (eds.). Handbook of Psychophysiology, 3d ed. Cambridge: Cambridge University Press, 2007.
16. Cai, S., and Xu, Y. Designing not just for pleasure: Effects of Web site aesthetics on consumer shopping value. International Journal of Electronic Commerce, 15, 4 (summer 2011), 159-188.
17. Carare, O., and Rothkopf, M.H. Slow Dutch auctions. Management Science, 51, 3 (2005), 365-373.
18. Childers, T.L.; Carr, C.L.; Peck, J.; and Carson, S. Hedonic and utilitarian motivations for online retails shopping behavior. Journal of Retailing, 77, 4 (2001), 511-535.
19. Cox, J.C.; Roberson, B.; and Smith, V.L. Theory and behavior of single object auctions. Research in Experimental Economics, 2, 1 (1982), 1-43.
20. Cox, J.C.; Smith, V.L.; and Walker, J.M. A test that discriminates between two models of the Dutch-first auction non-isomorphism. Journal of Economic Behavior and Organization, 4, 2/3 (June/September 1983), 205-219.
21. Davis, D.D., and Holt, C.A. Experimental Economics. Princeton: Princeton University Press, 1993.
22. Dawson, M.E.; Schell, A.M.; and Filion, D.L. The electrodermal system. In J.T. Cacioppo, L.G. Tassinary, and G.G. Berntson (eds.), Handbook of Psychophysiology, 3d ed. Cambridge: Cambridge University Press, 2007, pp. 159-181.
23. Delgado, M.R.; Schotter, A.; Ozbay, E.Y.; and Phelphs, E.A. Understanding overbidding: Using the neural circuitry of reward to design economic auctions. Science, 321, 5897 (September 2008), 1849-1852.
24. Falk, A., and Heckman, J.J. Lab experiments are a major source of knowledge in the social sciences. Science, 326, 5952 (October 2009), 535-538.
25. Fischbacher, U. z-Tree: Zurich Toolbox for Ready-Made Economic Experiments. Experimental Economics, 10, 2 (2007), 171-178.
26. Fowles, D.C.; Christie, M.J.; Edelberg, R.; Grings, W.W.; Lykken, D.T.; and Venables, P.H. Publication recommendations for electrodermal measurements. Psychophysiology, 18, 3 (1981), 232-239.
27. Friedman, D., and Cassar, A. Economics Lab: An Intensive Course in Experimental Economics. London: Routledge, 2009.
28. Friedman, D., and Sunder, S. Experimental Methods: A Primer for Economists. Cambridge: Cambridge University Press, 1994.
29. Griffith, D.; Krampf, R.F.; and Palmer, J.W. The role of interface in electronic commerce: Consumer involvement with print versus on-line catalogs. International Journal of Electronic Commerce, 5, 4 (summer 2001), 135-153.
30. Guala, F. The Methodology of Experimental Economics. Cambridge: Cambridge University Press, 2005.
31. Herschlag, M., and Zwick, R. Internet auctions: Popular and professional literature review. Quarterly Journal of Electronic Commerce, 1, 2 (2000), 161-186.
32. Hirschman, E.C., and Holbrook, M.B. Hedonic consumption: Emerging concepts, methods and propositions. Journal of Marketing, 46, 3 (1982), 92-101.
33. Holt, C.A., and Laury, S.K. Risk aversion and incentive effects. American Economic Review, 92, 5 (2002), 1644-1655.
34. Jennings, J.R.; Berg, W.K.; Hutcheson, J.S.; Obrist, P.; Porges, S.; and Turpin, G. Publication guidelines for heart rate studies in man. Psychophysiology, 18, 3 (1981), 226-231.
35. Kagel, J.H., and Roth, A.E. (eds.). The Handbook of Experimental Economics. Princeton: Princeton University Press, 1995.
36. Katok, E., and Kwasnica, A.M. Time is money: The effect of clock speed on seller's revenue in Dutch auctions. Experimental Economics, 11, 4 (2008), 344-357.
37. Kim, J.; Lee, J.; and Choi, D. Designing emotionally evocative homepages: An empirical study of the quantitative relations between design factors and emotional dimensions. International Journal of Human-Computer Studies, 59, 6 (2003), 899-940.
38. Ku, G. Auctions and auction fever: Explanations from competitive arousal and framing. Kellogg Journal of Organization Behavior, 3 (fall 2000), 1-32.
39. Ku, G.; Malhotra, D.; and Murnighan, J.K. Towards a competitive arousal model of decision-making: A study of auction fever in live and Internet auctions. Organizational Behavior and Human Decision Processes, 96, 2 (2005), 89-103.
40. Lang, P.J.; Greenwald, M.K.; Bradley, M.M.; and Hamm, A.O. Looking at pictures: Affective, facial, visceral, and behavioral reactions. Psychophysiology, 30, 3 (1993), 261-273.
41. Lee, M.-Y.; Kim, Y.-K.; and Fairhurst, A. Shopping value in online auctions: Their antecedents and outcomes. Journal of Retailing and Consumer Services, 16, 1 (2009), 75-82.
42. Lucking-Reiley, D. Using field experiments to test equivalence between auction formats: Magic on the Internet. American Economic Review, 89, 5 (1999), 1063-1080.
43. Lykken, D.T., and Venables, P.H. Direct measurement of skin conductance: A proposal for standardization. Psychophysiology, 8, 5 (1971), 656-672.
44. Malhotra, D. The desire to win: The effects of competitive arousal on motivation and behavior. Organizational Behavior and Human Decision Processes, 111, 2 (2010), 139-146.
45. Malhotra, D.; Ku, G.; and Murnighan, J.K. When winning is everything. Harvard Business Review, 86, 5 (2008), 78-86.
46. McAfee, R.P., and McMillan, J. Auctions and bidding. Journal of Economic Literature, 25, 2 (1987), 699-738.
47. Möllenberg, A. Internet auctions in marketing: The consumer perspective. Electronic Markets, 14, 4 (2004), 360-371.
48. Murnighan, J.K. A very extreme case of the dollar auction. Journal of Management Education, 26, 1 (2002), 56-69.
49. Ockenfels, A.; Reiley, D.; and Sadrieh, A. Online auctions. In T.J. Hendershott (ed.), Economics and Information Systems. Amsterdam: Elsevier, 2006, pp. 571-628.
50. Oh, W. C2C versus B2C: A comparison of the winner's curse in two types of electronic auctions. International Journal of Electronic Commerce, 6, 4 (summer 2002), 115-138.
51. Rasmusen, E. Games and Information: An Introduction to Game Theory, 4th ed. Malden, MA: Blackwell, 2007.
52. Schmidt, S., and Walach, H. Electrodermal activity (EDA): State-of-theart measurement and techniques for parapyschological purposes. Journal of Parapsychology, 64 (June 2000), 139-163.
53. Smith, C.W. Auctions: The Social Construction of Value. Berkeley: University of California Press, 1990.
54. Smith, K., and Dickhaut, J. Economics and emotion: Institutions matter. Games and Economic Behavior, 52, 2 (2005), 316-335.
55. Smith, V.L. Experimental economics: Induced value theory. American Economic Review, 66, 2 (1976), 274-279.
56. Stafford, M.R., and Stern, B. Consumer bidding behavior on Internet auction sites. International Journal of Electronic Commerce, 7, 1 (fall 2002), 135-150.
57. Stern, B., and Stafford, M.R. Individual and social determinants of winning bids in online auctions. Journal of Consumer Behaviour, 5, 1 (2006), 43-55.
58. Turocy, T.L.; Watson, E.; and Battalio, R.C. Framing the first-price auction. Experimental Economics, 10, 1 (2007), 37-51.
59. van den Bos, W.; Li, J.; Lau, T.; Maskin, E.; Cohen. J.D.; Montague, P.R.; and McClure, S.M. The value of victory: Social origins of the winner's curse in common value auctions. Judgment and Decision Making, 3, 7 (2008), 483-492.
60. Venables, P.H., and Christie, M.J. Electrodermal activity. In I. Martin (ed.), Techniques in Psychophysiology. Chichester, UK: Wiley, 1980, pp. 2-67.
61. Vickrey, W. Counterspeculation, auctions, and competitive sealed tenders. Journal of Finance, 16, 1 (1961), 8-37.
62. Vragov, R.; Shang, R.D.; and Lang, K.R. On-line auctions with buy-itnow pricing: A practical design model and experimental evaluation. International Journal of Electronic Commerce, 14, 4 (summer 2010), 39-67.
63. Wallin, B.G. Sympathetic nerve activity: Underlying electrodermal and cardiovascular reactions in man. Psychophysiology, 18, 4 (1981), 470-476.
64. Wolf, J.R.; Arkes, H.R.; and Muhanna, W.A. The power of touch: An examination of the effect of duration of physical contact on the valuation of objects. Judgment and Decision Making, 3, 6 (2008), 476-482.