Noy, Avi, Sheizaf Rafaeli

Online Auctions and Social Facilitation

Abstract

This is a study of social facilitation effects in online auctions. We focus on the growth in online auctions, and the concomitant emergence of instant messaging and communication availability technologies. The interaction between buyers and sellers in traditional, face-to-face markets and workplaces is obvious. Such interaction creates phenomena such as social facilitation where behavior and performance are impacted as a response to the presence of others. In this study we attempt to replicate and measure social facilitation effects under the Internet conditions of online or "virtual", mediated presence. A simulated, Java-based Internet Dutch auction was developed and used. Our findings indicate that social facilitation does indeed occur. In experimental examination participants improve their results and stay longer in the auction under conditions of higher virtual presence. Participants also indicate preference for auction arrangements with higher degrees of virtual presence. Theoretically, this study contributes to the study of social facilitation, adding evidence of the effect when the presence is virtual and not physical. In addition to the theoretical implications, these finding are relevant for technology developers and Internet sites, as well as those concerned with the social impact of system topology.