Competing sellers in online markets: reserve prices, shill bidding and auction fees
Gerding, E.H., Rogers, A., Dash, R.K. and Jennings, N. R. (2006) Competing sellers in online markets: reserve prices, shill bidding and auction fees. In, Fifth International Joint Conference on Autonomous Agents and Multiagent Systems (AAMAS-06), Hakodate, Japan, , 1208-1210.
In this paper, we consider competition between sellers offering similar items in concurrent online auctions, where each seller must set its individual auction parameters (such as the reserve price) in such a way as to attract buyers. We show that there exists a pure Nash equilibrium in the case of two sellers with asymmetric production costs. In addition, we show that, rather than setting a reserve price, a seller can further improve its utility by shill bidding (i.e., pretending to be a buyer in order to bid in its own auction). But, using an evolutionary simulation, we show that this shill bidding in- troduces inefficiences within the market. However, we then go on to show that these inefficiences can be reduced when the mediating auction institution uses appropriate auction fees that deter sellers from submitting shill bids.
|Item Type:||Conference or Workshop Item (Paper)|
|Keywords:||Mechanism Design, Competition, Shill Bidding, Auction Fees|
|Divisions:||Faculty of Physical and Applied Science > Electronics and Computer Science > Agents, Interactions & Complexity
|Date Deposited:||16 May 2006|
|Last Modified:||20 Jul 2012 04:04|
|Contributors:||Gerding, E.H. (Author)
Rogers, A. (Author)
Dash, R.K. (Author)
Jennings, N. R. (Author)
|Further Information:||Google Scholar|
|ISI Citation Count:||1|
|RDF:||RDF+N-Triples, RDF+N3, RDF+XML, Browse.|
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