Price Determinants in Online Auctions: a Comparative Study of Ebay China and Us

This study applies online auction theories developed in the US to a different national and cultural context (i.e., China). After summarizing and comparing factors that drive price across online auctions in China and the US, this study is able to identify similarities and differences. Specifically, the starting bid and seller reputation have been shown to have similar effects on price, though the magnitude of the effect varies among cultures. The number of product pictures has a significantly positive effect on price only for eBay China auctions, while the opposite is true for bidder expertise and auctions ending on weekends. These differences are further explained from cultural and institutional perspectives.