TY - GEN
T1 - Effect of auction design on bidder entry
T2 - 51st Annual Hawaii International Conference on System Sciences, HICSS 2018
AU - Hong, Yili
AU - Shao, Benjamin
AU - Chen, Pei Yu
AU - Liang, Chen
N1 - Publisher Copyright:
© 2018 IEEE Computer Society. All rights reserved.
PY - 2018
Y1 - 2018
N2 - We propose that auction duration and auction description are two important auction design parameters that could serve as screening mechanisms for quality in online auctions. Using data from an online labor matching platform that connects buyers with IT service vendors, we examine the effects of auction duration and auction descriptions on auction outcomes (i.e., number of bids, bidder quality, bidding price) and project outcomes (i.e., project being contracted and being completed). Our empirical analyses show that, in buyer-determined reverse auctions of online labor matching, auctions with a longer duration and a longer description attract more bids, but they also attract more low quality bidders with less experience and lower completion rate, and hence result in a lower probability of successful contracting and completion of software service projects. Our research provides empirical evidence highlighting the strategic roles of auction design parameters like auction duration and descriptions as a potential screening mechanism for online labor matching platforms.
AB - We propose that auction duration and auction description are two important auction design parameters that could serve as screening mechanisms for quality in online auctions. Using data from an online labor matching platform that connects buyers with IT service vendors, we examine the effects of auction duration and auction descriptions on auction outcomes (i.e., number of bids, bidder quality, bidding price) and project outcomes (i.e., project being contracted and being completed). Our empirical analyses show that, in buyer-determined reverse auctions of online labor matching, auctions with a longer duration and a longer description attract more bids, but they also attract more low quality bidders with less experience and lower completion rate, and hence result in a lower probability of successful contracting and completion of software service projects. Our research provides empirical evidence highlighting the strategic roles of auction design parameters like auction duration and descriptions as a potential screening mechanism for online labor matching platforms.
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M3 - Conference contribution
AN - SCOPUS:85106392890
T3 - Proceedings of the Annual Hawaii International Conference on System Sciences
SP - 3411
EP - 3420
BT - Proceedings of the 51st Annual Hawaii International Conference on System Sciences, HICSS 2018
A2 - Bui, Tung X.
PB - IEEE Computer Society
Y2 - 2 January 2018 through 6 January 2018
ER -