Comparative Study Of Online Auctions And Traditional Auctions

The online auction is one kind of new pattern of commercial trade, and its development take the traditional auction as a foundation, but it has many new changes. These changes appear as four areas. Firstly, the influencing factors of sellers'proceeds have increased. Secondly, the way of online auction has changed. Thirdly, it is more complicated to figure out the reserve price. Fourthly, Network provides an opportunity for fraud.The goal of sellers and bidders is pursuing the maximization of expected profit, therefore, it is a question that how to participate in the auction, the question relates to economical gambling and maximizing revenue. Foremost, this article summarized the concept of auction and the economic model. I establish the online auction model under the condition of independent private value auction in the Chapter 2. Then I have carried on the contrast to the traditional auction and the online auction through the theory and the example. I obtain the new characteristics which the online auction produces, and carry on the analysis for these characteristics. Finally, the optimal strategy used by bidders'participation in the auction was proposed.The research for the auction theory has already proved that the best reserve price is a protection for sellers'income. in the third chapter, on the foundation of the static Bayesian game model, I prove the uniqueness of the best reserve price, then through the establishment and the solution model of expected revenue maximization model, I analyze the influence for the reserve price, and propose most superior strategy for making reserve price.