Competing sellers in online markets: reserve prices, shill bidding and auction fees
OA Location
Author(s)
Gerding, EH
Rogers, A
Dash, RK
Jennings, NR
Type
Conference Paper
Abstract
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.
Date Issued
2006
Citation
Proc. 5th Int. Conf. on Autonomous Agents and Multi-Agent Systems, Hakodate, Japan, 2006, pp.1208-1210
Start Page
1208
End Page
1210
Journal / Book Title
Proc. 5th Int. Conf. on Autonomous Agents and Multi-Agent Systems, Hakodate, Japan
Identifier
http://eprints.soton.ac.uk/262585/
Source
Fifth International Joint Conference on Autonomous Agents and Multiagent Systems (AAMAS-06)
Subjects
Science & Technology
Technology
Computer Science, Artificial Intelligence
Computer Science
Artificial Intelligence & Image Processing
08 Information And Computing Sciences
Notes
keywords: Mechanism Design, Competition, Shill Bidding, Auction Fees
Publication Status
Unpublished