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2002

Bidder's strategy under group-buying auction on the Internet

8 years 10 months ago
Bidder's strategy under group-buying auction on the Internet
The group-buying auction is a new kind of dynamic pricing mechanism on the Internet. It is a variant of the sellers' price double auction, which makes the bidders as a group through Internet to get the volume discounts, i.e., the more bidders bid, the lower the price of the object being auctioned becomes. In this paper, we analyze the group-buying auction under some assumptions, such as that the independent private values (IPVs) model applies and bidders are risk neutral and symmetric, etc., and build an incomplete information dynamic game model to illustrate the bidders' bidding process. It proves that for the bidders there exists a weakly dominant strategy , i.e., no matter when a bidder arrives at the auction and what the bidding history is, the highest permitted bid price that is no greater than his value to the object is always his optimal bid price but may not be the unique one.
Jian Chen, Xilong Chen, Xiping Song
Added 23 Dec 2010
Updated 23 Dec 2010
Type Journal
Year 2002
Where TSMC
Authors Jian Chen, Xilong Chen, Xiping Song
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