Analyzing the Consumers' Decision When Simultaneous Use of Auction and Posted Price

Abstract

by constructing the exponential delay cost function, we formulate the consumer decision model based on the threshold strategies in dual-mechanism, and prove that there exists a unique symmetric Nash equilibrium in which the high-valuation consumers use a threshold policy to choose between the two selling channels. Then we extend our model under general delay cost function, and find that consumers with higher valuation will choose threshold strategies to make decision once arriving at websites only if the delay cost function of them continuous strict increases with the auction remaining time