Abstract:
This paper analyzes the bidding behaviour and psychology of making buying decisions in
online auction using the example of the biggest online-auction server- eBay, with almost no
barriers to entry of online auctions. Users may log in and freely move, observe auctions and
then make decision whether join it, bid, try to win or not or just stop their actions on
observing. Users logged are from all over the world, from different cultures, societies, have
different perception of value and different standards of evaluating of products. All bidders
engaged in one auction mix all their attributes and characteristics and make that specific
auction different, abnormal or unexplainable in terms of popular findings and analyses
available. For them eBay was created and they shape the auction and decide what is sold and
bought. Data collection can be conducted without any restrictions and payments, based only
on own perception of what is needed and useful for calculations that will be done. This paper
is mainly focused on reviewing the theory of auction bidding, on specific behaviors that may
be present in each phase of auction, and are typical for online auctions, and on connection
with the area of economy.
