Study The Workflow Of Sealed-bid Land Auction And Simulation

As written at Article 3 on "Auction Law of the People's Republic of China", Auction means the buying and selling form through which designated articles or property rights are transferred, in the form of public bidding, to those providing the highest bidding price. By auction way to implement the transfer of land-use right, it can arouse the initiative for both buyer and seller, and get profits for both of them. The seller of land-use right can choose those who have strong strength and high reputation, ensure the quality of project; The buyer of land-use right can participate in competition fairly, bear project successfully, and get profits; it is also good for the high efficiency and high transparency of the land distribution of resources, and promote long-term utilize of land and long-term development of economics. These factors caused the land auction market to come into being. In order to protect fair trade, simplify procedures, improve efficiency, and reduce transaction costs, more and more local governments to launch an online trading platform of land use rights. This paper analyzes the online auction system running workflow, and designs an automatic transfer of workflow for online auction system, and system architecture.This article also from the dynamic game of tender and bidder point of view, analyzed the key activities about the workflow rules and the strategy of bidder in bidding, and pointed out that the essence of the two activities lie in the tender and the bidder's dynamic game.The traditional method to research land auction market with different auction mechanism is to build gambling model, and think that balanced status has the max probability in real market. Then by balanced status, we can estimate the influence of real trade price brought by different parameters and mechanism in auction gambling model. However, traditional economic model can not describe the choice of bid strategy for bidders clearly in the whole process of action. It has limit to research land auction market with complex rules, and hard to build proper gambling model, and has difficulty to compute the result. In recent 20 year the development of the agent-based computational methods offer us a new way for research. Agent-Based Computational Economics is a new subject field by using computer and information technology to analyze and estimate economic problem. Its core idea is simulating economic system by computer, and by many times simulation to research complex economic phenomenon. At present, agent-based computational methods have got lots of achievements in many fields. In 1990s later period, with different fields scientists joining in, agent-based computational methods got high-speed development, and has become a hot spot among many subject fields.This paper according agent-based computational methods builds a land auction simulation model. In this model the bidders learn bidding strategy using reinforced learning algorithm in repeated bidding game to seek for their maximum profits. With the repeated simulation times, markets will gradually convergence to balance position. This paper simulates both the first—price sealed auction and the second—price sealed auction, and compare their market motion difference. It indicates in the result that agent-based simulation model not only can simulate the land auction market mechanism, but also can become a useful tool to evaluate the land auction market.