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Article
Understanding auction fever: A framework for emotional bidding
Electronic Markets (2011)
  • Marc T. P. Adam, Karlsruhe Institute of Technology
  • Jan Krämer, Karlsruhe Institute of Technology
  • Caroline Jähnig
  • Stefan Seifert
  • Christof Weinhardt
Abstract

Auction fever is a multifaceted phenomenon that is frequently observed in both traditional and Internet auctions. In order to gain a better understanding of its causes, we develop a conceptual framework to analyze emotions in auctions, which is based on an exhaustive literature review. The framework integrates rational calculus with emotional aspects and suggests that emotional processing is triggered at three different stages of an auction: First, the economic environment can affect a bidder’s level of perceived competition and thus influence the bidding strategy prior to the auction. Second, auction events may have ramifications on the bidder’s emotional state during the auction due to previous investments or perceived ownership. Third, past auction outcomes may impact future bidding behavior through emotions such as the joy of winning or loser regret. Auction fever, eventually, is a phenomenon that results from the interplay of these emotional processes and causes a bidder to deviate from an initially chosen bidding strategy.

Keywords
  • Auction Fever,
  • Auctions,
  • Emotions
Publication Date
2011
Citation Information
Marc T. P. Adam, Jan Krämer, Caroline Jähnig, Stefan Seifert, et al.. "Understanding auction fever: A framework for emotional bidding" Electronic Markets Vol. 21 (2011)
Available at: http://works.bepress.com/marc_adam/4/