| dc.description.abstract | Online auctions have become increasingly popular in recent years, and as a consequence,
there is a growing body of emphirical research on this topic. Most of that
research treats data from online auctions as cross-sectional and consequently, ignores
the changing dynamics that occurs during an auction. In this work, we take a different
look at online auctions and propose to study an auction's price evolution and
associated price dynamics. Specifically, we develop a model to study factors that
affect formation of price in an auction. Modeling price and its dynamics in online
auctions is challenging because traditional methods cannot adequately account for two
features of online auction data: (1) the unequal spacing of bids and (2) the changing
dynamics of price and bidding throughout the auction. Our model accounts for these
special features by using modern functional data analysis techniques. Our analysis
suggests that the opening bid positively affects online auction price level of PDA at
the beginning of the auction and its effect declines toward the end of the auction.
Key words and phrases: Functional regression analysis, spline smoothing, eBay,
online auction, auction dynamics, price evolution. | en |
