The effect of buyer's gender, risk‐proneness, and time remaining in an internet auction on the decision to bid or buy‐it‐now

Abstract

PurposeThis paper aims to study how buyers' gender and risk proclivity, and the time remaining in an internet auction, influence whether buyers buy at fixed prices or bid.Design/methodology/approachThe study is based on a simulated internet auction. Participants choose between bidding in an auction and buying at a fixed price. Data are analyzed using a logistic regression model. The results from the laboratory study are validated with data from eBay.com.FindingsFemale participants’ odds of choosing the buy‐it‐now (BIN) option are higher than their odds of bidding in an auction (BID) when less time is remaining in an auction. Contrarily, for males, when less time is remaining, BID is preferred over BIN. Unexpectedly, when substantial time is remaining, males have greater odds of choosing BIN over BID except when they are high risk‐seekers. Simulation results correspond closely with eBay data.Practical implicationsThe paper shows that not only do gender differences manifest themselves in ways that are to be expected, such as females being more risk‐averse than males, but that competitiveness among males may lead to an uncharacteristic choice to buy at fixed prices if substantial time is remaining in an auction. Furthermore, the latent competitive nature of females is revealed by secondary research. Finally, the research validates laboratory results with field data to practice methodological triangulation.Originality/valueA comparison of determinants of bidding versus buying at fixed prices is missing from the extant literature. The present study fills this gap.