Effect of Auction Design on Bidder Entry: Evidence from An Online Labor Market
Date
2018-01-03
Contributor
Advisor
Department
Instructor
Depositor
Speaker
Researcher
Consultant
Interviewer
Narrator
Transcriber
Annotator
Journal Title
Journal ISSN
Volume Title
Publisher
Volume
Number/Issue
Starting Page
Ending Page
Alternative Title
Abstract
We propose that auction duration and auction description are two important auction design parameters that could serve as screening mechanisms for quality in online auctions. Using data from an online labor matching platform that connects buyers with IT service vendors, we examine the effects of auction duration and auction descriptions on auction outcomes (i.e., number of bids, bidder quality, bidding price) and project outcomes (i.e., project being contracted and being completed). Our empirical analyses show that, in buyer-determined reverse auctions of online labor matching, auctions with a longer duration and a longer description attract more bids, but they also attract more low quality bidders with less experience and lower completion rate, and hence result in a lower probability of successful contracting and completion of software service projects. Our research provides empirical evidence highlighting the strategic roles of auction design parameters like auction duration and descriptions as a potential screening mechanism for online labor matching platforms.
Description
Keywords
Crowd-based Platforms, auction design auction duration auction description online labor matching screening
Citation
Extent
10 pages
Format
Geographic Location
Time Period
Related To
Proceedings of the 51st Hawaii International Conference on System Sciences
Related To (URI)
Table of Contents
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International
Rights Holder
Local Contexts
Collections
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.