Abstract
Online transactions have become increasingly crucial in worldwide social and commercial activities as the Internet has risen in popularity. The online auction has gradually developed into a major trade mode as an effective technique of online trading. This paper mainly studies the factors that influence the decision of buyers and sellers in the new online auction of the group-buying auction, reverse auction, and buy-it-now auction. It is found that psychological factors often affect consumers' entry time in online group-buying auctions, and sellers' use of static public reserve prices or secret reserve prices will lead to different results. In an online reverse auction, buyers can improve their own interests by colluding, while sellers' expectations of buyers and information processing ability have certain effects on the present and future decision-making. In an online buy-it-now auction, consumers' risk sensitivity will affect buyers' strategy, while sellers' price-setting strategy will affect their own earnings. This paper aims to comprehensively analyze and summarize the strategies of buyers and sellers in each online auction, hoping to provide useful information for participants in the online auction.
Highlights
1.1 Research background of the online auctionWith the rapid expansion of the Internet and electronic commerce, online transactions have been recognized as a crucial mode of market transaction
In addition to the traditional British and Dutch online auctions, in recent years, based on the characteristics of the Internet, in order to meet the various needs of consumers, new online auctions: group buying auction, reverse auction, buy-it- auction has gradually entered people's vision
In the online group-buying auction, the seller's choice of the static public reserve price or secret reserve price can lead to different results
Summary
With the rapid expansion of the Internet and electronic commerce, online transactions have been recognized as a crucial mode of market transaction. The reason why online auction is so important is that it has the unique advantages of the traditional auction: high transparency of information, saving a lot of transaction costs and time costs, improving market matching, etc. On the basis of detailed research of 142 distinct Internet auction sites, David, etc., traced the evolution of online auctions. Because of the large amount of price and quantity information that online auctions inherently disclose, they discovered that they are easier to complete than almost any other type of business transaction [1]. There is a common problem in various online auctions: information asymmetry. The seller can strategically raise the price and increase the expected price of the buyer so as to gain profits while the buyer suffers from the "winner's curse." Bajari etc., used eBay to conduct a common value auction of coins of collector value, demonstrating that online auctions with common value features have the winner's curse problem [2]
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