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| Content Provider | ACM Digital Library |
|---|---|
| Author | Kauffman, Robert J. Wood, Charles A. |
| Abstract | Technological advancements have transformed the auction markets, where investing in collectibles, like rare coins, is more akin to buying and selling stocks. There can be market prices established, with investors scouring the online auctions, such as eBay, where millions of transactions occur daily. Just as with stocks, investors have the ability to purchase these collectibles without leaving their home or office, and can search, compare, buy, and sell collectibles. Also similar to the stock market, investors can look for inefficiencies to exploit. This multi-year exploratory study investigates the level of efficiency in online auctions over five years. We find evidence that efficiency is tied to the ratio of bidders to auctions, and that with a sufficient number of auctions, the online auction market can approach efficiency, affording purchasers some protection from overpaying. Our findings also suggest when investors can best search online auction markets looking for profitable inefficiencies to exploit. |
| Starting Page | 277 |
| Ending Page | 282 |
| Page Count | 6 |
| File Format | |
| ISBN | 9781595937001 |
| DOI | 10.1145/1282100.1282154 |
| Language | English |
| Publisher | Association for Computing Machinery (ACM) |
| Publisher Date | 2007-08-19 |
| Publisher Place | New York |
| Access Restriction | Subscribed |
| Subject Keyword | Market performance It impacts Electronic financial markets Market efficiency Capital asset pricing model Electronic commerce Electronic markets and auctions |
| Content Type | Text |
| Resource Type | Article |
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