Research On Emotional Bidding Strategies Under The Circumstance Of Uncertain Reserve Price

Auction, as an ancient mechanism of finding price, has been a thousand years of history, and has become popular for its unique enchantment all over the world. With the accelerated development and application of auction theory, it is more and more close to people's lives. At present, the research of auction identifies two major literature streams. The first literature stream is optimal bidding strategies such as optimal bidding price, which maximize the bidder's utility, or bidding behavior characteristic of different risk preference and propensity to bid. The second literature stream is optimal auction mechanism. There are collusion and demoralization, where the auctioneer suffers from losing. How to guarantee auction process effectively and orderly is concerned for the experts.To our knowledge, the concept of reserve price is involved in majorities of auction research. So far, reserve price is still regarded as constant. The researches on reserve price focus on whether it is made or not and how to made it. However, with the development of market economy, more and more commodity is traded through auction market. So there exists the phenomenon of uncertain reserve price. Consistent with the volatility of commodity prices, we suppose the reserve price under the uniform probability distribution and the normal probability distribution, respectively. We do the theoretical analyses and the empirical testing for it. In order to fit actuality, we set a limit to the parameters of uniform distribution and normal distribution. In that situation, the bidder's monetary utility and emotional utility are different. Namely, when the bid is accepted, the overall utility of the bid is not always positive; when the bid is rejected, the overall utility of the bid is not always negative. So we analyzed the bidder's monetary utility and emotional utility in chapter 4. Then optimal bidding strategies are obtained by monetary utility model and emotional utility model building. The impacts of some factors on optimal bidding price are discussed, and draw a series of valuable conclusions.