Modeling competitive bidding: a critical essay
Management Science
The Michigan Internet AuctionBot: a configurable auction server for human and software agents
AGENTS '98 Proceedings of the second international conference on Autonomous agents
Brokering strategies in electronic commerce markets
Proceedings of the 1st ACM conference on Electronic commerce
B2B Procurement and Marketplace Transformation
Information Technology and Management
Economic mechanism design for computerized agents
WOEC'95 Proceedings of the 1st conference on USENIX Workshop on Electronic Commerce - Volume 1
Optimal Dynamic Auctions for Revenue Management
Management Science
Online auctions enabling the secondary computer market
Information Technology and Management
Comparison of the group-buying auction and the fixed pricing mechanism
Decision Support Systems
An integrated model exploring sellers' strategies in eBay auctions
Electronic Commerce Research
Segmenting uncertain demand in group-buying auctions
Electronic Commerce Research and Applications
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Online auctions are a profitable, exciting, and dynamic part of electronic commerce, and behave in ways, which do not match classical auction theory. This paper models an online auction in terms of a Markov chain on a state space defined by the current price of the item and the number of bidders who have been previously “bumped”. It provides a mathematical model, some approximations, which were necessary to convert it into a tractable problem and solutions to a small and a medium-sized theoretical auction. The model results were validated through a comparison with real-world online auction data, showing promise as a predictor of final auction prices. The results of the auction model are also useful in solving an optimization problem that incorporates inventory management considerations in determining optimal auction size.