Flower Auction Market Operation Analysis And Research

As a mechanism,auction can discover price and allocate resources.The study about auction has developed very well.Initially,auction study is pan of the scope of operational research.In the 1980s,as the United States is preparing to use auction in the process of sales of government bonds,which led to an upsurge study.In particular, the development of the theory of game theory,information economics,and experimental economics has been providing a good areas and opportunities for auction theory.However,as the initial research focused on standard auction and single item auction,in recent years it has extended to more goods auction.Flower sales using Dutch auction which is down auction(vs.up auction),that is a multi-units sequential auction.Although the Dutch flower auction has been in operation for nearly 100 years,but there is not much study about it.With the development of agricultural technology and the policy and the support of fund,the ways of China's agricultural products sales happened to huge changes. Particularly,the introduction of information technology,the reform of management tools,the establishing of system of auction becomes possible.This will undoubtedly make China's agricultural products trade more convenient.Flower as a refined product,can make people delighted in feast.Flower industry is a high value-added sunrise industry,which can extend the industrial chain,solve the issue of farmers and accelerate the rich of farmers.It also has been attracting the attention and favor of governors.Flower auction market has appearing nearly five years.This paper studies flower auction with the example of Kunming International Flower Auction,analyzes the effectiveness and impact of auction transactions after the introduction into China.It introduces the construction and status of Kunming flower auction market first, and then analyzes the characteristics of the auction transaction,the conditions it need to the auction construction in details,and points out the problems,at the same time, qualitatively analyzes the status of the Kunming International Flower Auction Trading Center.Thirdly,with the help of the theory of auctions it delves into the principle of flower auctions,mainly consisting of optimal auction mechanism,flower auction market characteristics and the modeling when there has external alternative markets which would cause auction prices decline.Fourthly,it uses statistical methods to measure the operation of the market,mainly consisting of time series analysis of prices,trading volume,the volume of transactions,and so on.It shows that the price of flower auction appears upward,but there are obviously seasonal fluctuations. Fifthly,it provides the affected factors to the bidding price,including grade,length and competitive order.Mainly it pointed out that the order has an impact on flowers prices.The result is not simply price drift,but the one which is in the middle or the lower reaches into the high prices.Sixthly,we set up the price index to reflect the trend of price changes,which reflects that it needs to avoid market risks.So finally,in accordance with the fluctuation of price index,we give the advice to set up flowers futures market,which can avoid price fluctuations in the market,avoiding marketing risks which is a goodadvice for the development of flower auction.