Understanding auction fever: a frameworkfor emotional bidding

Auction fever is a multifaceted phenomenon thatis frequently observed in both traditional and Internetauctions. In order to gain a better understanding of itscauses, we develop a conceptual framework to analyzeemotions in auctions, which is based on an exhaustiveliterature review. The framework integrates rational calculuswith emotional aspects and suggests that emotional processingis triggered at three different stages of an auction:First, the economic environment can affect a bidder’s levelof perceived competition and thus influence the biddingstrategy prior to the auction. Second, auction events mayhave ramifications on the bidder’s emotional state duringthe auction due to previous investments or perceivedownership. Third, past auction outcomes may impact futurebidding behavior through emotions such as the joy ofwinning or loser regret. Auction fever, eventually, is aphenomenon that results from the interplay of theseemotional processes and causes a bidder to deviate froman initially chosen bidding strategy.