Estimating Time Required to Reach Bid Levels in Online Auctions.
ABSTRACT Sellers in eBay are often small-business owners whose livelihood depends on fast turnaround of their cash flows. Unlike in traditional auctions, these sellers are content to sell as soon as some target price is reached. While a wealth of literature exists on the final rent of the various stakeholders in a traditional auction setting, what is of interest here is to estimate the time required to reach a certain bid level in ongoing auctions. This paper introduces an analytical model to estimate the time it takes an online auction to reach a pre-specified price threshold. The motivation for the research is to avoid unnecessary delays in conducting the transaction. Specifying the right duration would benefit small sellers who would realize the revenue proceeds from the sale faster. To this end, we model the bidding process as an infinite quasi-birth-death process, characterized by bursts of rapid bidding and subsequent lulls. We obtain closed-form solutions for the transient probability distribution in the frequency domain of the bid prices in an ongoing auction, which are then used to compute the transient probability distributions in the time domain. Experienced auctioneers can use these results to estimate expected ending times for their auctions. Sample observations from online auctions indicate that there might be potential room for improvement for sellers in setting their auction ending times. Simulations of the QBD processes back up the theoretical observations.
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ABSTRACT: The mobile phone is rapidly growing in essentiality in the era of the information technology industry, especially among undergraduates albeit the rising number of competing service providers for mobile phones. A new niche market for this mobile gadget would very soon become overcrowded, thus compelling service providers to continuously be seeking the right mix of determining variables that would make customers buy and stick to their product. The empirical research on six public universities emphasises the decision-making model by Assael 1992, Schiffman and Kanuk 2004, and Engel et al. 1990 as it seeks to evaluate the 4ps product, promotion, price and place and less common antecedents family, friends and social class as component of inputs. The findings show that all the factors are contributory variables, with the exception of 'product factor', which shows spurious reliability results. However it was found out that price was the most notable determinant.International Journal of Business Information Systems 11/2014; 15(1):43-64. DOI:10.1504/IJBIS.2014.057964