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dc.contributor.authorMuthitachareon, Achita
dc.contributor.authorBarut, Mehmet
dc.contributor.authorSaeed, Khawaja A.
dc.identifier.citationMuthitachareon, Achita; Barut, Mehmet; Saeed, Khawaja A. 2014. The role of uncertainty stemming from product monetary value in online auctions: the case of search goods. International Journal of Electronic Commerce, vol. 19:no. 1:pp 65-98en_US
dc.descriptionClick on the DOI link to access the article (may not be free).en_US
dc.description.abstractThis study strives to demonstrate that uncertainty in online auction transactions is partly driven by product monetary values. We argue that as product monetary value increases, so do transaction uncertainty and the amount of consumers' cognitive effort required for analyzing the transaction. This effect can be observed through the changing roles of price premium determinants such as seller reputation, seller strategies, bidder strategies, and market competition among auctions that offer identical items. Drawing upon consumers' goal to minimize their cognitive effort, this study develops two online auction price premium models that are customized to different levels of product monetary value. To test the models, online auction transactions from eBay were collected and separated into lower-priced and higher-priced auction samples. The results show that consumers' goal of minimizing cognitive effort in the bidding process can explain most of the relationships between price premium and its determinants proposed in this study. Some findings, despite appearing to be counterintuitive, produce logical and actionable guidelines for the auction community. For example, we recommend that auction sellers of lower-priced products adopt shorter auction durations because it helps bidders minimize their cognitive effort through lower monitoring cost, which subsequently increases their willingness to pay extra price premiums.en_US
dc.publisherTaylor & Francis Groupen_US
dc.relation.ispartofseriesInternational Journal of Electronic Commerce;v.19:no.1
dc.subjectBidder's cognitive effortsen_US
dc.subjectCognitive efforten_US
dc.subjectElectronic auctionsen_US
dc.subjectOnline auctionsen_US
dc.subjectOnline biddingen_US
dc.subjectPrice premiumen_US
dc.subjectProduct monetary valueen_US
dc.subjectTransaction uncertaintyen_US
dc.titleThe role of uncertainty stemming from product monetary value in online auctions: the case of search goodsen_US
dc.rights.holderCopyright © 2014 Routledge

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