Analysis of Buyer and Seller's Decision under New Online Auction

Abstract

Online transactions have become increasingly crucial in worldwide social and commercial activities as the Internet has risen in popularity. The online auction has gradually developed into a major trade mode as an effective technique of online trading. This paper mainly studies the factors that influence the decision of buyers and sellers in the new online auction of the group-buying auction, reverse auction, and buy-it-now auction. It is found that psychological factors often affect consumers' entry time in online group-buying auctions, and sellers' use of static public reserve prices or secret reserve prices will lead to different results. In an online reverse auction, buyers can improve their own interests by colluding, while sellers' expectations of buyers and information processing ability have certain effects on the present and future decision-making. In an online buy-it-now auction, consumers' risk sensitivity will affect buyers' strategy, while sellers' price-setting strategy will affect their own earnings. This paper aims to comprehensively analyze and summarize the strategies of buyers and sellers in each online auction, hoping to provide useful information for participants in the online auction.