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2014 47th Hawaii International Conference on System Sciences (2008)
Waikoloa, Big Island, Hawaii
Jan. 7, 2008 to Jan. 10, 2008
ISSN: 1530-1605
ISBN: 0-7695-3075-3
pp: 282
ABSTRACT
In this paper we use a simulation model to extend previous analytical research on a firm selling consumer goods online using posted price and auction at the same time. With the simulation we investigate three selling regimes: dual channel with sealed-bid auction; dual channel with open-bid auction, and a single channel with only posted price. We examine how the auction format affects the optimal design of the dual-channel, its performance relative to the single channel, and the sales in each channel. We find that in 81% of the cases we examine, the design that maximizes the average revenue from a dual channel with open-bid auction is the same as the design that maximizes the average revenue from a dual channel with sealed-bid auction. Also, the dual/open regime usually outperforms the dual/sealed regime, and both dual channel regimes outperform the single channel.
INDEX TERMS
CITATION
Scott Moore, Hila Etzion, "Simulation of Online Selling with Posted-Price and Auctions: Comparison of Dual Channel?s Performance under Different Auction Mechanisms", 2014 47th Hawaii International Conference on System Sciences, vol. 00, no. , pp. 282, 2008, doi:10.1109/HICSS.2008.394
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