The Effect of Auction Duration on Seller’s Expected Revenue

DOI

10.2991/aebmr.k.201211.084How to use a DOI?

Keywords

Expected revenue, independent private value model, auction duration

Abstract

The research object of this paper is online auction with storage cost, and the relationship between seller’s expected revenue and the auction duration has been discussed. Based on intuition that as the duration of auction increases, the increment in seller’s expected revenue due to the increment in the number of bidders is first greater than the cost and then less than the cost, and two conclusions are drawn under the independent private value model: 1. If the auction duration is too long, the seller’s expected revenue will become negative. 2. There exists a positive value, and when the auction duration exceeds this value, the seller’s expected revenue is monotonously decreasing about the auction duration.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Junjie Ren
AU  - Shaogang Chen
PY  - 2020
DA  - 2020/12/14
TI  - The Effect of Auction Duration on Seller’s Expected Revenue
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 501
EP  - 504
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.084
DO  - 10.2991/aebmr.k.201211.084
ID  - Ren2020
ER  -