Electronic Markets

, 21:197 | Cite as

Understanding auction fever: a framework for emotional bidding

  • Marc T. P. Adam
  • Jan Krämer
  • Caroline Jähnig
  • Stefan Seifert
  • Christof Weinhardt
General Research

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

Auctions Auction fever Emotions 

JEL

D03 D44 L81 

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Copyright information

© Institute of Information Management, University of St. Gallen 2011

Authors and Affiliations

  • Marc T. P. Adam
    • 1
  • Jan Krämer
    • 1
  • Caroline Jähnig
    • 2
  • Stefan Seifert
    • 1
  • Christof Weinhardt
    • 1
  1. 1.Institute for Information Systems and ManagementKarlsruhe Institute of TechnologyKarlsruheGermany
  2. 2.Chair of Business Education and Human Resource DevelopmentGeorg-August-University GöttingenGöttingenGermany

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