Title :
An Analysis of Dynamic Setting of Reserve Price Based on Priceline
Author :
Xu, Yaqing ; Hu, Qiying
Author_Institution :
Xidian Univ., Xi´´an
Abstract :
Based on the famous reverse auction Web site Priceline, this paper studies on a problem of how to dynamically set reserve prices of some goods for the seller in a period of continuous time, so that the seller can gain maximal expected revenue. The method of optimal control is used, and after the mathematical model the HJB equation is analyzed. Some properties of the optimal strategy are shown, and numerical examples are given
Keywords :
commerce; mathematical analysis; pricing; HJB equation; Priceline; Web site; mathematical model; maximal expected revenue; optimal control; reserve price; reverse auction; Airplanes; Cost accounting; Distribution functions; Information analysis; Mathematical model; Optimal control; Poisson equations; Uncertainty; Priceline; on-line auction; reserve price; reverse auction;
Conference_Titel :
Service Systems and Service Management, 2006 International Conference on
Conference_Location :
Troyes
Print_ISBN :
1-4244-0450-9
Electronic_ISBN :
1-4244-0451-7
DOI :
10.1109/ICSSSM.2006.320635
