Optimistic overconfidence in electronic reverse auctions
- Autor(en)
- Aysegül Engin, Rudolf Vetschera
- Abstrakt
Optimistic overconfidence, the overly optimistic view of uncertain events, can significantly impact bidding behavior in auctions. This bias so far has been mainly seen as a cause for the winner’s curse in common value auctions. In the present paper, we experimentally study overconfidence in the context of electronic reverse auctions. Here, overconfidence might lead to misperceptions of the bidder’s own cost situation, and of the probability of winning. We also study interactions of overconfidence with other psychometric properties of the bidder, and the format of information presentation. Both factors could mitigate the impact of overconfidence. Our results indicate that overconfidence leads to a more optimistic view of winning the auction and to more aggressive bidding. Its effect can be mitigated if bidders have a high risk literacy, but possibilities to influence it by better information representation are limited.
- Organisation(en)
- Institut für Business Decisions and Analytics
- Journal
- Electronic Commerce Research and Applications
- Band
- 35
- Anzahl der Seiten
- 10
- ISSN
- 1567-4223
- DOI
- https://doi.org/10.1016/j.elerap.2019.100842
- Publikationsdatum
- 2019
- Peer-reviewed
- Ja
- ÖFOS 2012
- 502052 Betriebswirtschaftslehre
- Schlagwörter
- ASJC Scopus Sachgebiete
- Management of Technology and Innovation, Marketing, Computer Networks and Communications, Computer Science Applications
- Link zum Portal
- https://ucris.univie.ac.at/portal/de/publications/optimistic-overconfidence-in-electronic-reverse-auctions(59edf604-3aab-4e40-b740-850da1a52bba).html