Research On Internet Auction Approach Based On The Time Value

Auction has been widely acknowledged as an effective way to estimate value by market. Since the 1990s of last century, the Internet auction represented by Ebay auction website had begun to be worldwide popular accompanied by the rise of Internet. So there are great realistic meanings on the research of Internet auction.As determined by the characteristic of the Internet, auction mechanism of Internet is inevitably distinct from the traditional auction. The previous mechanism design theories, which based on the traditional onsite auction design skills, is now insufficient and ineligible to apply to operations of Internet auction, therefore, how to design an optimal auction approach for Internet auctions is an imperative and important issue in the field of network auction. The purpose of this text is to optimize the existing Internet auction approach.This article summarizes the existing documents at first, pays close attention to the time value existing in the Internet auction. And then, the article analyses the bidders' behavior in Internet auction according to the reality, and derives out the possible auction results in the assumption that the time partiality does not exist. After comparing this result and the real auction record, people can discover enormous differences between them. As a result, the above-mentioned assumption about time partiality is overthrown. And then, the article adopts Markov's random model to imitate the Internet auction course according to the analysis result of preceding paragraphs. The simulation result and the real data is identical. Markov' s model has not merely proved the assumption of time partiality is exact, but also get the result that the whole course of expecting auction price change time by time through this model. In the end, the article designs a dynamical auction approach according to time partiality, proves that the efficiency of Internet auction can be improved based on the original foundation through the intact theory, another advantage of this dynamical auction approach is that it can operate and offers a feasible thinking method for solving the efficiency problem of Internet auction.