Title :
Price formation and its dynamics in Dutch auctions
Author :
Du, Li ; Xu, Ya-lan ; Bian, Na
Author_Institution :
Sch. of Econ. & Manage., Xidian Univ., Xi´´an, China
Abstract :
The research uses flower auction data from KIFA to study the price formation process in Dutch auctions. Using ARIMA model, we find that the auction prices are highly correlated and the prices follow an AR(1, 0, 0) process with coefficient 0.583. Based on it, we construct multiple linear regression equations and analyze the effect of some factors on the auction prices. The result shows that the average auction price on the previous day and the first five auction prices today have a positive impact on the tendency of the auction price today. Meanwhile, the ratio of demand to supply quantity also has a significant impact on the auction price.
Keywords :
autoregressive moving average processes; commerce; pricing; regression analysis; ARIMA model; Dutch auctions; KIFA; flower auction data; multiple linear regression equations; price formation process; Agricultural products; Clocks; Economics; Educational institutions; Equations; Linear regression; Mathematical model; Auction price; Dutch auction; Flower auction;
Conference_Titel :
Industrial Engineering and Engineering Management (IE&EM), 2011 IEEE 18Th International Conference on
Conference_Location :
Changchun
Print_ISBN :
978-1-61284-446-6
DOI :
10.1109/ICIEEM.2011.6035579
