Optimal starting price in online auctions

Hai Yu; Shouyang Wang; Chuangyin Dang

doi:10.1007/11600930_31

Optimal starting price in online auctions

Hai Yu
, Shouyang Wang
, Chuangyin Dang

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

1 Citation (Scopus)

Abstract

Reserve price auctions are one of hot research topics in the traditional auction theory. Here we study the starting price in an online auction, counterpart of the public reserve price in a traditional auction. By considering three features of online auctions, the stochastic entry of bidders (subject to Poisson process), the insertion fee proportional to the starting price, and time discount, we have analyzed the properties of extremum points of the starting price for maximizing seller's expected revenue, and found that, under certain conditions, the optimal starting price should be at the lowest allowable level, which is contrary to results from the classic auction theory and finds its optimality in reality. We have also developed a general extended model of multistage auction and carried out analysis on its properties. At last, some directions for further research are also put forward. © Springer-Verlag Berlin Heidelberg 2005.

Original language	English
Title of host publication	Internet and Network Economics
Subtitle of host publication	First International Workshop, WINE 2005, Hong Kong, China, December 15-17, 2005, Proceedings
Editors	Xiaotie Deng, Yinyu Ye
Place of Publication	Berlin, Heidelberg
Publisher	Springer
Pages	315-324
ISBN (Electronic)	978-3-540-32293-1
ISBN (Print)	9783540309000
DOIs	https://doi.org/10.1007/11600930_31
Publication status	Published - 2005
Event	1st International Workshop on Internet and Network Economics (WINE 2005) - Hong Kong, China Duration: 15 Dec 2005 → 17 Dec 2005

Publication series

Name	Lecture Notes in Computer Science
Volume	3828
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Conference

Conference	1st International Workshop on Internet and Network Economics (WINE 2005)
Place	China
City	Hong Kong
Period	15/12/05 → 17/12/05

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title = "Optimal starting price in online auctions",

abstract = "Reserve price auctions are one of hot research topics in the traditional auction theory. Here we study the starting price in an online auction, counterpart of the public reserve price in a traditional auction. By considering three features of online auctions, the stochastic entry of bidders (subject to Poisson process), the insertion fee proportional to the starting price, and time discount, we have analyzed the properties of extremum points of the starting price for maximizing seller's expected revenue, and found that, under certain conditions, the optimal starting price should be at the lowest allowable level, which is contrary to results from the classic auction theory and finds its optimality in reality. We have also developed a general extended model of multistage auction and carried out analysis on its properties. At last, some directions for further research are also put forward. {\textcopyright} Springer-Verlag Berlin Heidelberg 2005.",

author = "Hai Yu and Shouyang Wang and Chuangyin Dang",

year = "2005",

doi = "10.1007/11600930\_31",

language = "English",

isbn = "9783540309000",

series = "Lecture Notes in Computer Science ",

publisher = "Springer ",

pages = "315--324",

editor = "Deng, \{Xiaotie \} and Ye, \{Yinyu \}",

booktitle = "Internet and Network Economics",

note = "1st International Workshop on Internet and Network Economics (WINE 2005) ; Conference date: 15-12-2005 Through 17-12-2005",

}

Yu, H, Wang, S & Dang, C 2005, Optimal starting price in online auctions. in X Deng & Y Ye (eds), Internet and Network Economics: First International Workshop, WINE 2005, Hong Kong, China, December 15-17, 2005, Proceedings. Lecture Notes in Computer Science , vol. 3828 , Springer , Berlin, Heidelberg, pp. 315-324, 1st International Workshop on Internet and Network Economics (WINE 2005), Hong Kong, China, 15/12/05. https://doi.org/10.1007/11600930_31

Optimal starting price in online auctions. / Yu, Hai; Wang, Shouyang; Dang, Chuangyin.
Internet and Network Economics: First International Workshop, WINE 2005, Hong Kong, China, December 15-17, 2005, Proceedings. ed. / Xiaotie Deng; Yinyu Ye. Berlin, Heidelberg: Springer , 2005. p. 315-324 (Lecture Notes in Computer Science ; Vol. 3828 ).

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

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T1 - Optimal starting price in online auctions

AU - Yu, Hai

AU - Wang, Shouyang

AU - Dang, Chuangyin

PY - 2005

Y1 - 2005

N2 - Reserve price auctions are one of hot research topics in the traditional auction theory. Here we study the starting price in an online auction, counterpart of the public reserve price in a traditional auction. By considering three features of online auctions, the stochastic entry of bidders (subject to Poisson process), the insertion fee proportional to the starting price, and time discount, we have analyzed the properties of extremum points of the starting price for maximizing seller's expected revenue, and found that, under certain conditions, the optimal starting price should be at the lowest allowable level, which is contrary to results from the classic auction theory and finds its optimality in reality. We have also developed a general extended model of multistage auction and carried out analysis on its properties. At last, some directions for further research are also put forward. © Springer-Verlag Berlin Heidelberg 2005.

AB - Reserve price auctions are one of hot research topics in the traditional auction theory. Here we study the starting price in an online auction, counterpart of the public reserve price in a traditional auction. By considering three features of online auctions, the stochastic entry of bidders (subject to Poisson process), the insertion fee proportional to the starting price, and time discount, we have analyzed the properties of extremum points of the starting price for maximizing seller's expected revenue, and found that, under certain conditions, the optimal starting price should be at the lowest allowable level, which is contrary to results from the classic auction theory and finds its optimality in reality. We have also developed a general extended model of multistage auction and carried out analysis on its properties. At last, some directions for further research are also put forward. © Springer-Verlag Berlin Heidelberg 2005.

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M3 - RGC 32 - Refereed conference paper (with host publication)

SN - 9783540309000

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EP - 324

BT - Internet and Network Economics

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Optimal starting price in online auctions

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