The Optimal Strategy Modeling in Online Auction with Buy it Now
In this paper, fixed price and standard second-price English online auction are combined together in the pricing format that offers customers the option of ending an auction at the Buy-it-Now price. This paper studies the optimal response strategy of time-sensitive customers to such pricing format. Considering the impacts of participant options and arrival times on customers utility, the customers indifference curve is proposed. It can be proved that the first customer arriving in a Poisson process will immediately choose one option according to his valuation function instead of waiting, while other customers will bid their true valuations. A numerical example is given in which the customers valuations are assumed to be uniformly distributed. The characteristics of indifference curve and the effect of time-sensitive factor on the customers decision are discussed. Finally the sellers decision problem of maximizing expected revenue is also formulated.
customers response online auction Buy It Now price
Hao Lu Jing Zhou Hui Yang
School of Management and Engineering, Nanjing University, China, 210093
国际会议
2007 International Conference on Manufacturing & Service Operations Management(2007制造与服务运作管理国际学术会议)
北京
英文
2007-06-18（万方平台首次上网日期，不代表论文的发表时间）