The effects of hedonic and utilitarian bidding values on e-auction behavior

Abstract

This study focuses on how hedonic versus utilitarian bidding values affect bidding behavior in e-auctions. The bidding behavioral data was collected through a quasi-experimental design on an authentic e-auction website. The results, derived from 121 participants, showed that bidders with high utilitarian bidding values were more likely to win bids than those with high hedonic bidding values. In addition, bidders with high utilitarian bidding values were more likely to offer a higher final bid than those with high hedonic bidding values because they estimated a higher reasonable price for the item. Finally, bidders with high hedonic bidding values were more likely to use a manual bidding approach, whereas those with high utilitarian bidding values were more likely to use an automatic bidding approach. © 2015, Springer Science+Business Media New York.