Computer Engineering Commons^™

Evaluating Electronic Market Designs: The Effects Of Competitive Arousal And Social Facilitation On Electronic Group Buying, Yuecheng Yu, Karl R. Lang, Alex Pelaez

Research Collection School Of Computing and Information Systems

This article presents an evaluation approach foralternative electronic market designs and examines theimpact of competitive arousal under time pressure onmarket performance in a group-buying setting. Drawingon theory from economics, decision theory, andinformation systems, we present a competitive arousalmodel for a social buying setting that posits thatintroducing competitive arousal among buyers reducesbuyer profits and that social facilitation can mitigate thesecosts through better task completion and time tocompletion rates. Using an economic experiment, wefound that rivalry has a negative effect on buyer profitsbut also that competitive arousal increases the efficiencyof social facilitation in terms of group formation. Wediscuss the implications of these …