Research Of Online Double Auction Strategy Based On Game Theory

With the arising and prosperity of B2B and C2C trading market,online auction have faced a series of problems in practice,such as "slamming",the transaction time was set up long and the cost increased due to bidding frequently. By comparative analysis, it is found that most of these problems in the performance of the online one-side auction in the form of the barriers.Double auction coincides with the "many to many" market structure in online environment,so that double auction is more suitable for online auction.It also can achieve fair market price under the condition of information asymmetry between sellers and buyers,furthermore, converge the market to competition equilibrium. So double auction can solve the problem of traditional auction, which is restricted by many factors. It improves resource utilization rate of Internet and reduces the network load,and provides important theoretical solution for online auction.This paper takes online double auction as the research object, by means of the game theory,the method of experimental economics and auction theory,which adopts the continuous double auction as the implement model of the online double auction.Following this idea,firstly,considering the information asymmetry between sellers and buyers and maximizing personal expect utility,we introduce the concept of "virtual quote",then intend to construct a bidding strategy model based on Bayesian-Nash equilibrium, and obtain an optimal solution using the first order linear fimction of Taylor expansion.Secondly,on the basis of the existing price adjustment strategy, we introduce "reserve price" theory,put forward a price adjustment strategy based on reserve price. This strategy ensures consistency of the trend of the price adjustment of the both sides participants, and makes each bidder’ price convergence fast to the respective reserve price.Finally, according to method of experimental economics, we analyze in detail the characters by means of computer simulation.The results of experiments with an appropriate price adjustment coefficient, show the competitive equilibrium exists in the online double auction, and the strategy transaction path still follows strictly the "Marshallian path" with highest efficiency of resource allocation and profit maximization.Therefore, it is concluded that the strategy can effectively reduce the bidding round, significantly improve the efficiency of online auction and network resource utilization, etc. It can overcome the current barriers of online one-side auction, provides a feasible way for the realization of the online double auction, and it is great significance to advance in the development of online auction practice.