Is Trust the Whole Story? Rethinking Online Auction viaNetwork Exchange Theory

Yuan Li
2003 Americas Conference on Information Systems  
It is generally accepted that trust has main effects on the final prices in online auctions, and that trust-building techniques are important for guiding auction behavior. Previous empirical studies, however, did not find strong evidence to support this. A possible reason is that available studies are based upon the dyadic relationship between sellers and bidders, but the social networks embedded in the auctions are overlooked. Based on the Network Exchange Theory, this research investigates
more » ... impact of social networks on the bidding prices, and re-examines the role that trust plays in online auctions. It suggests that both the competition among bidders and previous auctions of similar merchandises have direct impact on the final price, and that trust influences the price indirectly through its impact on participation in bidding. A preliminary empirical study is conducted to test these hypotheses, and the result supports the conceived impact of social networks. This study provides a new approach to online auction research and extends available knowledge on bidding behavior.
dblp:conf/amcis/Li03 fatcat:jeypic3krfhuhcizrlemy6d4w4