Study Of The Effect Of Payment Discount In Online Auctions

With the development of online business, Auction this ancient pricing and Goodsdistribution method come to a new opportunity for development. With the world’s fist onlineauction website ’e-bay’ been found in1995, shopping online is becoming a modern live style.With the online trading market being matures, competitions between traders, becoming more andmore serious, in order to survive in the cruel competition, traders take a lot of methods to attractcustomers and to enhance their market share. Based on this fact, a variety of promotion auctionshave come into being. For example, the use of vouchers, discounts in the auctions. In this paper,we name all the auctions with preferential payment discount auctions.This paper studied the optimal decision and revenue of both buyers and sellers in Onlinefirst-price and second-price auction, under two classical value model of private values andinterdependent values, with payment discount. We use the knowledge of game theory and optiontheory to analysis whether the customers buying the vouchers and the discount coupons purchasethat sold by the sellers. We concluded that when bidders bidding in auctions with paymentdiscount they obeyed the principle that their expect payment is not changed. Also, we introducedthe payment discount into "auction and bargain" two-stage auction, we gives the balancedbargain solution to the buyer. Finally, we analysis the mode of operation, profit model, bidders’bidding strategy, shill bidding and the existence of collusion of the "5pai" online auctionmechanism.