Title :
Strategy and numerical analysis for sellers based on Priceline
Author :
Xu, Yaqing ; Hu, Qiying
Author_Institution :
School of Economics & Management Xidian University Xi´´an, 710071, China
Abstract :
Based on the famous reverse auction website Priceline, the following two situations are modeled for sellers: one is that customers bid and then sellers decide to accept or reject, and the other is that sellers set a price-limit before customers´ bidding. Theoretical analysis proves that both the models are equivalent, which means the expressions of the optimal value function and the optimal price for sellers are the same separately. Three demand functions are considered of the second situation in numerical analysis with the following properties: 1) the marginal revenue increases in the remaining time, 2) the price-limit is monotone in the remaining time and items, 3) and the optimal value is the concave function of the remaining time and items separately.
Keywords :
Analytical models; Biological system modeling; Economics; Equations; Mathematical model; Numerical analysis; Numerical models; Priceline; online auction; reverse auction;
Conference_Titel :
E -Business and E -Government (ICEE), 2011 International Conference on
Conference_Location :
Shanghai, China
Print_ISBN :
978-1-4244-8691-5
DOI :
10.1109/ICEBEG.2011.5882205