Does Higher Transparency Lead to More Search in Online Auctions?
Article first published online: 1 MAY 2012
© 2012 Production and Operations Management Society
Production and Operations Management
Volume 23, Issue 2, pages 197–209, February 2014
How to Cite
Haruvy, E., Popkowski Leszczyc, P. T. L. and Ma, Y. (2014), Does Higher Transparency Lead to More Search in Online Auctions?. Production and Operations Management, 23: 197–209. doi: 10.1111/j.1937-5956.2012.01357.x
- Issue published online: 20 FEB 2014
- Article first published online: 1 MAY 2012
- Manuscript Accepted: 1 DEC 2011
- Manuscript Received: 1 FEB 2011
- Social Sciences and Humanities Research Council of Canada
- University of Alberta
- field experiments;
- clickstream data
In a controlled field experiment, we examine pairs of auctions for identical items under different conditions. We find that auction design features that are under the control of the auctioneer—including information transparency, number of simultaneous auctions, and the degree of overlap between simultaneous auctions—affect bidder search and choice. Clickstream data show that a significant relationship between information transparency and price dispersion can be linked to search. Specifically, the effect of information transparency on price dispersion is fully mediated by lookup behavior. Combining these findings, we make auction design recommendations regarding the provision of product and value information.