The Community for Technology Leaders
RSS Icon
Issue No.04 - April (2009 vol.21)
pp: 554-567
Arvind K. Tripathi , University of Washington Business School, Seattle
Gilbert G. Karuga , University of Kansas, Lawrence
This study proposes methods for determining the optimal lot sizes for sequential auctions that are conducted to sell sizable quantities of an item. These auctions are fairly common in business to consumer (B2C) auctions. In these auctions, the tradeoff for the auctioneer is between the alacrity with which funds are received, and the amount of funds collected by the faster clearing of inventory using larger lot sizes. Observed bids in these auctions impact the auctioneer
Internet Applications, Miscellaneous, Electronic Commerce, Emerging knowledge and data engineering applications (electronic commerce)
Arvind K. Tripathi, Gilbert G. Karuga, "Optimal Lot Sizing Policies For Sequential Online Auctions", IEEE Transactions on Knowledge & Data Engineering, vol.21, no. 4, pp. 554-567, April 2009, doi:10.1109/TKDE.2008.145
[1] A. Arora, H. Xu, R. Padman, and W. Vogt, Optimal Bidding in Sequential Auctions Working Paper,, 2004.
[2] Order Statistics: Theory and Methods, N. Balakrishnan, C.R. Rao, eds. Elsiever, 1998.
[3] R. Bapna, P. Goes, and A. Gupta, “Analysis and Design of Business-to-Consumer Online Auctions,” Management Science, vol. 49, no. 1, pp. 85-101, 2003.
[4] R. Bapna, P. Goes, A. Gupta, and G. Karuga, “Optimal Design of the Online Auction Channel: Analytical, Empirical and Computational Insights,” Decision Sciences, vol. 33, no. 4, pp. 557-577, 2002.
[5] R. Bapna, P. Goes, A. Gupta, and G. Karuga, “Predicting Bidders' Willingness to Pay in Online Multi-Unit Ascending Auctions: Analytical and Empirical Insights,” INFORMS J. Computing, forthcoming, 2008.
[6] D. Bernhardt and D. Scoones, “A Note on Sequential Auctions,” The Am. Economic Rev., vol. 84, no. 3, pp. 653-657, 1994.
[7] R. Burguet and J. Sakovics, “Sequential Auctions with Supply or Demand Uncertainty,” Revista Espanola de Economia, vol. 14, no. 1, pp. 23-40, 1997.
[8] G. Cai and P.R. Wurman, “Monte Carlo Approximation in Incomplete Information, Sequential Auction Games,” Decision Support Systems, vol. 39, no. 2, pp. 153-168, 2005.
[9] Census Bureau,, 2006.
[10] E. Cinlar, Introduction to Stochastic Processes. Prentice Hall, 1975.
[11] R. Davidson, Stochastic Dominance, McGill Univ., working paper, pdf , 2006.
[12] U.M. Dholakia and K. Soltysinski, “Coveted or Overlooked? The Psychology of Bidding for Comparable Listings in Digital Auctions,” Marketing Letters, vol. 12, no. 3, pp. 223-235, 2001.
[13] eBay Results, http://investor.ebay.comearnings.cfm, 2006.
[14] R. Engelbrecht-Wiggans, J.A. List, and D. Reiley, “Demand Reduction in a Multi-Unit Auction: Evidence from a Sportscard Field Experiment: Reply,” Am. Economic Rev., 2004.
[15] R. Engelbrecht-Wiggans, J.A. List, and D.H. Reiley, “Demand Reduction in Multi-Unit Auctions with Varying Numbers of Bidders: Theory and Evidence from a Field Experiment,” Int'l Economic Rev., vol. 47, no. 1, pp. 203-231, 2006.
[16] J. Feng and K. Chatterjee, One Auction or Two: Simultaneous versus Sequential Sales in Multi-Unit Auctions, Dept. Working Paper 02-10, Smeal College of Business, Penn State Univ., 2003.
[17] P. Goes, G. Karuga, and A. Tripathi, “Understanding Willingness-to-Pay Formation of Repeat Bidders in Sequential Auctions,” to appear in Information Systems Research.
[18] M.B. Gordy, “Computationally Convenient Distributional Assumptions for Common Value Auctions,” Computational Economics, vol. 12, pp. 61-78, 1998.
[19] D.B. Hausch, “Multi-Object Auctions; Sequential versus Simultaneous Sales,” Management Science, vol. 32, no. 12, pp. 1599-1610, 1986.
[20] A.M. Law and W.D. Kelton, Simulation Modeling and Analysis. McGraw-Hill, 1982.
[21] P. Milgrom, “Auctions and Bidding: A Primer,” J. Economic Perspectives, vol. 3, pp. 3-22, 1989.
[22] P. Milgrom and R.J. Weber, “A Theory of Auctions and Competitive Bidding,” Econometrica, vol. 50, pp. 1089-1122, 1982.
[23] T. Neugebauer and P. Pezanis-Christou, “Bidding at Sequential First-Price Auctions with(out) Supply Uncertainty: A Laboratory Analysis,” J. Economics Behavior and Organization, vol. 63, no. 1, pp.55-72, 2006.
[24] E.J. Pinker, A. Seidmann, and Y. Vakrat, Using Transaction Data for the Design of Sequential, Multi-Unit, Online Auctions, working paper, Univ. of Rochester, 2005.
[25] E.J. Pinker, A. Seidmann, and Y. Vakrat, “Managing Online Auctions: Current Business and Research Issues,” Management Science, vol. 49, no. 11, pp. 1457-1484, 2003.
[26] Y. Raviv, “New Evidence on Price Anomalies in Sequential Auctions: Used Cars in New Jersey,” J. Business and Economic Statistics, vol. 24, no. 3, pp. 301-312, 2006.
[27] M. Shaked and J.G. Shantikumar, Stochastic Orders and Their Applications. Academic Press, 1994.
[28] U. Song, “Nonparametric Estimation of an eBay Auction Model with an Unknown Number of Bidders,” working paper, Univ. of British Columbia, 2004
[29] A.K. Tripathi and S.K. Nair, “Mobile Advertising in Capacitated Wireless Networks,” IEEE Trans. Knowledge and Data Eng., vol. 18, no. 9, pp. 1284-1296, Sept. 2006.
[30] G. Van Ryzin and G. Vulcano, “Optimal Ordering and Ordering in an Infinite Horizon Inventory-Pricing System,” Operations Research, vol. 52, no. 3, pp. 346-367, 2004.
[31] M.V. Van Boening, S.J. Rassenti, and V.L. Smith, “Numerical Computation of Equilibrium Bid Functions in a First-Price Auction with Heterogeneous Risk Attitudes,” Experimental Economics, vol. 1, pp. 147-159, 1998.
[32] W. Vickrey, “Counterspeculation, Auctions, and Competitive Sealed Tenders,” J. Finance, vol. 16, no. 1, pp. 8-37, 1961.
[33] G. Vulcano, G. van Ryzin, and C. Maglaras, “Optimal Dynamic Auctions for Revenue Management,” Management Science, vol. 48, no. 11, pp. 1388-1407, 2002.
[34] R.J. Weber, “Multiple Object Auctions,” Auctions, Bidding and Contracting: Uses and Theory, R. Engelbrecht-Wiggans, M. Shubik, and R.M. Stark, eds., New York Univ. Press, 1983.
[35] G.A. Whitmore and M.C. Findlay, Stochastic Dominance. Lexington Books, D.C. Heath, 1978.
[36] R. Zeithammer, Sequential Auctions for Substitutes: A Theory of Bargain-Hunting on eBay. MIT Sloan School of Management, 2002.
[37] R. Zeithammer, “Strategic Bid-Shading and Sequential Auctioning with Learning from Past Prices,” Management Science, vol. 53, no. 9, pp. 1510-1519, 2007.
16 ms
(Ver 2.0)

Marketing Automation Platform Marketing Automation Tool