A Study Of Online Auctions Based On Internet

Auction is a set of economic mechanism for pricing, Auction is the natural product of the market economy, and a very effective approach to resource allocation. It wins confidence between the two transaction parties for its openness, fairness and impartialness. Online auctions have many new characters of no time and space constraints, more convenient and flexible, low transaction costs, variety products and uncertain bidding number ,some new issues other than traditional auctions come up. Traditional economic theories cannot explain these problems and therefore require theoretical workers to work together to carry out systematic research to guide online auction market continuously improvement and rapid development. It becomes a hot of the study of economics in recent years. How to integrate internet technology and environment to auctions stand in the forefront of academic research. Therefore, the online auction is a very important in theoretical study and practical application.The core issue of this paper includes models and theories of online auction, participants behaviors analysis, the reputation system, market space , integrated evaluation system, platform design. The paper introduces the three auction models and its main theories, then analysis detailed the participants behaviors based on internet technology and environment, points out of auction sites value with market space, analysis the reputation system, builds up a comprehensive evaluation system for online auction site. At last, an online auction platform is designed. It is an application-oriented paper. The investigating, comparing, statistic and deducing research method are applied in the paper. And we have the following findings:(1) Empirically study from the business model, the functional requirements, technical requirements, major technologies, auction frequency, ending rules, winning rules, securities and auction types after investigating 114 online auction sites. What's more, its functional flow is given and the principles and workflow of auction agents are discussed.(2) Put forward a 0-1 distribution model based on bidding time. Then we apply game theory and equilibrium theory into the online auction with fixed deadline like eBay, and get a result that late bidding is a dominating strategy among all the bidding strategies. Then a general 0-1 distribution model based on bidding time is put forward too, so we apply game theory and equilibrium theory into the online auction with automatic extension of close time like Amazon, and get a result that late bidding is not a dominating strategy among all the bidding strategies.(3) Introduce the related conceptsαandβvalues which determine the strategies of the agents to cooperate or not, then building an optimization model of single round prisoners dilemma game. And point out that the conditional cooperation can become into complete cooperation.(4) Build up a reputation system model named"slow rising and fast falling".(5) Build up a R-S value model on online auctions, then give an empirical study among online auction sites in the Chinese mainland including the product types, the auction rules, the security mechanisms, the payment methods and delivery methods. And draw a conclusion that we should build up more brands from auction products, auction rules, payment and delivery methods to increase the market value of online auction websites.(6) Establish an integrated evaluation system of online auction sites, then apply AHP model into the real online auction site evaluation.