Analysis and evaluation for optimal allocation in sequential Internet auction systems with reserve price

作者：Du L^*; Hu QY; Yue WY

来源：Dynamics of Continuous Discrete and Impulsive Systems: Series B; Applications and Algorithms , 2005, 12(4): 617-631.

• Web services
• Internet auction
• Markov decision process
• performance analysis
• optimal allocation

In this paper, we present a new performance model and an analysis for its optimal allocation in a sequential Internet auction system with a set reserve price. In the sequential Internet auction system, a seller wants to sell a given amount, of items through sequential auctions on the Internet. The seller has a reserve price for each item. For each auction, the seller should allocate a quantity of items from the total available items to be auctioned. The buyers arrive according to a Poisson process and bid honestly. We first, consider the model to be a Markov decision process and present its performance analysis. In the analysis, we show that the result is no difference whether the reserve price is or public. Then we show that in the monotonous properties of the optimal policy, a greater number of items will be allocated if there are more items held or there are fewer horizons remaining. Finally, numerical results are given.

• 出版日期2005-8
• 单位西安电子科技大学; 上海大学