Cross-cultural differences in online auctions

This dissertation examines the impact of information on online auction value determination. Posted bid values for completed auctions on Ebay are compared and contrasted across three cultures, Germany, Japan and the United States. Completed auction data is collected from local Ebay websites in each country. Information in the form of reserve price, pictures, combinations of reserve price and pictures, and no additional object information is compared both within and across these three cultures.; The study reveals significant interaction between culture and information. Individuals appear to be risk averse and use information differently in the different cultures. The impact and resultant affect of information on online auctions seem to be culturally defined. Cultures with high contextual needs seem to require more information and bid more strategically in auctions with more information and stay away from auctions with lesser information. Likewise, cultures with lower contextual needs seem to need relatively less information for value determination. The overall findings are consistent with Hofstede's (1984) and Hall's (1976) theories on culture and cultural differences.