Subjective Assessments of Self and Competitor Expertise: Influences on Bidding and Post-Auction Product Valuation

TR Number
Journal Title
Journal ISSN
Volume Title
Virginia Tech

This dissertation contains two essays focusing on how Self and Competitor Expertise influence valuation both during and post-auction. The first essay, "Competitor Expertise: Influences on bidding behavior and post-auction values in ascending auctions," considers how a bidder's perception of competitors' expertise types and levels influences valuation both during (bid level), after (WTP/WTA), and over time (∆WTP/∆WTA). Generally, I find that despite normative predictions regarding bidding behavior in a competitive auction environment, bidders tend to bid higher and maintain higher post-auction valuations when competing against experts in the product domain, although not amateurs or experts in other domains (e.g., auction bidding strategies). Post-auction valuation patterns further depended on Auction Outcome. The second essay, "Assessed Self-Expertise: Influences on Bidding Behavior and Post-Auction Values Against Competitors of Varying Expertise Levels," extends our investigation to consider how a bidder's perception of their own expertise type and level also influences valuation both during and post-auction. Broadly, I find additional support that bidders post higher valuations both during and post-auction when competing against Experts vs. Amateurs, but that this behavior is primarily driven by bidders who assess themselves as Experts and further depends on Auction Outcome.

Auctions, Competitor Expertise, Participative Pricing