Research On Strategies Of Three Participants In Online Persistent Buy-It-Now Auctions

Auction is an important mechanism for allocating market resources and tapping the value of commodities.With the booming development of the Internet,online auctions have become an important part of auctions,and buy-it-now auctions are a new type of auction method that emerged with the rise of online auctions.Lasting buy-it-now auction is a common form of auction in buy-it-now auctions,and is widely used in major ecommerce platforms.The auction process is a game among the three participants,i.e.,the bidder,the seller and the auction platform,so it is worth studying how the three participants in a persistent buy-it-now auction can choose a strategy to maximize their own profit.Based on the independent private value model,this paper develops a persistent buyit-now auction model under the influence of the time factor and the number of lots,taking into account the existence of an "end-of-bidding mechanism" and the need for sellers to auction multiple homogeneous items in real auctions.Through theoretical derivation and numerical analysis,some important and valuable conclusions are obtained and guidance is given to the strategy selection of the three participants.The details of the study are as follows.(1)In order to take into account the existence of "end-of-bidding mechanism" in actual auctions,a persistent buy-it-now auction model based on a nonlinear Poisson process is developed.The bidding strategies of bidders in choosing bids under the influence of time factor,the strategies of bidders in choosing bids or buy-it-now,the strategies of sellers in setting buy-it-now price and the strategies of auction platforms in setting commission rates are derived.(2)Since sellers in persistent buy-it-now auctions often set more than a unit number of lots,a multi-item persistent buy-it-now auction model is established.The bidding strategies of bidders in selecting bids under the influence of multi-item factors,the bidders’ selection strategies for buy-it-now price,and the setting strategies of sellers’ onebite bids are derived.(3)Constructing an arithmetic example for the theoretical derivation part and the numerical solution is solved by Newton’s method.Numerical analysis of auction duration,lot quantity is performed to explore the effects of time and quantity factors on the strategies of buyers and sellers,and to analyze the differences between the strategies of online and offline auction parties.