Understanding the Impact of Promotional Messages in Live English Auctions : A Dynamic and Simultaneous Model of New Bidder's Entry, Sequence of Bids, and Auctioneer's Strategy
(2006)
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- Authors
- Abstract
- (en) This paper proposes to measure the impact of promotional messages sent during an online auction, on the final price of this auction. We model this impact through a disaggregated and dynamic model. This model simultaneously takes into account the following three factors: (i) the direct impact of marketing messages on the auction price when messages affect bidders' valuations, (ii) the indirect impact of messages on this price when messages attract new bidders to the auction, and (iii) the possibility that the auctioneer's strategy for sending messages may depend on bidding activity, the number of bidders, and the current auction price. Results, based on online auctions organised by the French airline company Air France, show the indirect influence of promotional messages on the final auction price (measured by sequence of bids), through the entry of new bidders in the auction.
- Affiliations
Louvain School of Management Marketing
Citations
Ducarroz, C., Greenleaf, E., & Yang, S. (2006). Understanding the Impact of Promotional Messages in Live English Auctions : A Dynamic and Simultaneous Model of New Bidder’s Entry, Sequence of Bids, and Auctioneer’s Strategy. https://hdl.handle.net/2078.5/87344