Auction Theory And Its Applied Research In The Auction Industry In China

Auction is one of the most important types of international trade. Auction mechanism is classified into four types in classical theory of auction. As development of E-Commerce and Economic, many new Combinatorial Auction mechanism has emerged, such as random nth-rice auction, GVA, SAA, AUSM, PSP, AkBA, iBundle, new auction mechanism has also been developed to prevent buyer false-name bidding, such as TPD, LDS, S-MAP. Random nth-price auction is designed to induce people to reveal their private preferences for a good. GVA is generally accepted as a efficient combinatorial auction mechanism. SAA has been adopted in FCC's spectrum auction, and achieved high performance. AUSM could be applied hi combinatorial auction where goods in combination are complement. PSP is another prospective efficient combinatorial auction mechanism. AkBA and iBundle is easy to implement, and more practical compared to GVA. The main objective of TPD, LDS, and S-MAP is to prevent buyer false-name bidding in internet auction. Domestic research on auction is in its early stage; English auction is still most popular auction mechanism in domestic auction market. Auction strategy consists of buyer strategy and seller strategy. Seller should estimate buyer's behavior and value, choose mechanism and rule, to prevent buyer's collusion, and achieve maximum of revenue. Buyer has different strategy in four types of auction. In IPV model, the optimal strategy of bidder in English auction and Vickrey auction is bid his private value, while bidder in Dutch auction and first-price sealed-bid auction has no optimal strategy(their strategy depends on other bidder's value and bid). Signal bidding and "sniper" is also derived as new strategy for buyer in new auction mechanism. After introduction of development of foreign auction theory and strategy, we presented our suggestion on how to adopt new finding on auction mechanism and strategy.