The Power of Collective Insight: Harnessing the Wisdom of the Crowd for Digital Auction Success

Anton Ivanov, Jasmina Tacheva, Ujjal Mukherjee

Research output: Chapter in Book/Entry/PoemConference contribution

Abstract

During the COVID-19 pandemic, online auction markets gained significant importance for their efficient and transparent handling of the shift in economic activity. Renowned digital car auction platform Bring a Trailer (BaT) experienced remarkable growth, with its revenue reaching $828 million in 2020. This study investigates the factors contributing to BaT's success, focusing on the role of its unique community comment feature, which leverages the collective intelligence of its users, known as wisdom of the crowd (WOC) in IS literature. Analyzing a dataset of 13,451 car listings, the study explores how WOC elements such as information quality and user identity impact auction performance. The analysis reveals that helpful WOC content positively influences auction outcomes, reducing information asymmetry and increasing market efficiency. The impact of WOC contributor reputations, however, showed less consistent results. These findings are relevant for stakeholders in the automotive market, providing insights to inform decision-making in online auction markets.

Original languageEnglish (US)
Title of host publicationProceedings of the 57th Annual Hawaii International Conference on System Sciences, HICSS 2024
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages4114-4123
Number of pages10
ISBN (Electronic)9780998133171
StatePublished - 2024
Event57th Annual Hawaii International Conference on System Sciences, HICSS 2024 - Honolulu, United States
Duration: Jan 3 2024Jan 6 2024

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
ISSN (Print)1530-1605

Conference

Conference57th Annual Hawaii International Conference on System Sciences, HICSS 2024
Country/TerritoryUnited States
CityHonolulu
Period1/3/241/6/24

Keywords

  • Information Asymmetry
  • Information Quality
  • Online Auctions
  • User Identity
  • Wisdom of the Crowd

ASJC Scopus subject areas

  • General Engineering

Fingerprint

Dive into the research topics of 'The Power of Collective Insight: Harnessing the Wisdom of the Crowd for Digital Auction Success'. Together they form a unique fingerprint.

Cite this