Multi-Unit Auction Model Based on Loss Aversion

Abstract

Based on the cost of Internet auctions and the auctioneers' psychological loss aversion, we do a research on the decision-making of multiunit e- auctions. The loss aversion psychology of auctioneers is drawn into the expected utility function model. Meantime, the function of the multiunit e-auctions, which reflects the multiunit e-auction of auctioneers' loss aversion, is established. Then an analysis of the static comparison is made to the influence of the loss aversion coefficient on the optimal length of auction, the number of optimal auction, as well as the prospective goal. Finally, several examples to analyze conclusions are given.