Bidding Strategies in Online Art Auctions with Buyout Prices
- 10.2991/assehr.k.211209.375How to use a DOI?
- Online art auction; bidding strategy; buyout option; game model
Online art auctions with buyout prices are extensively applied as a modified form of art auctions for breaking the limit of fixed time auction ends and combining fixed-price selling with English auctions, while numerous problems exist in the real process of these auctions since reliable information on the bidding strategies is relatively rare. The purpose of this study is to analyze the bidding strategies in online art auctions with different buyout prices. After reviewing the auction theory and preceding studies on online auctions, this research paper builds a game model for online art auctions with fixed, temporary, and permanent buyout prices by expanding Vickery’s independent private value model, elaborating on the optimal bidding strategy in each type of situation by comparing bidder’s valuation and the buyout price. Furthermore, this paper proposes a threshold value to help a bidder understand his best move by considering if his valuation exceeds the threshold value and thus determining whether to choose the buyout option in an art auction.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Peize Dong PY - 2021 DA - 2021/12/15 TI - Bidding Strategies in Online Art Auctions with Buyout Prices BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 2285 EP - 2291 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.375 DO - 10.2991/assehr.k.211209.375 ID - Dong2021 ER -