Research On Sequential Auction Of Multi-Object With Different Traffic Costs

In the sequential auction of multiple items,the bidder's valuations of the items are often complex and subject to differences in items and asymmetric information.The traditional Hotelling model successfully describes the differences between items by using the spatial location of the items and has been widely used in the field of game theory research.However,there is a clear deficiency in the model,that is,the model assumes that the traffic line is a non-connected line,but the actual traffic line is often a closed curve,so the use of Circle model to describe the differences between items will be more realistic.In addition,"information" is one of the core concepts in auction research,auction theory often assumes that the bidders have accurate information about the auctioned items,but in the actual auction,the bidders' information about the items is not necessarily complete or definite,so more and more researches have attempted to compare the impact of the differences of bidders' information on auction.By using the second-price sealed auction mechanism,this paper explores the issue of sequential auction of a class of substitutes and information disclosure for the future item.In order to use spatial location to characterize the variability of substitutes,we first analyze the deficiencies of the Hotelling model and then use a more realistic Circle model.Specifically,we first use the Circle model to characterize the auction characteristics of one kind of special substitute,such as the difference of the items,the type of bidders and their surplus,then we solve the bidders' equilibrium bidding,and discuss the seller's excepted revenue by using the concept of equivalent opponent and Marginal Loser;then under the assumption that the bidders are evenly distributed on Circle,the mathematical formula of the equilibrium quotation is given,and we discuss a Marginal Loser's excepted surplus when the information of future item is public or unknown,and we also discuss the auction efficiency of the first item.Finally,because the equilibrium needs to solve a complex set of equations,we use the Monte-Carlo simulation method to make an intuitive analysis of the auction,and get some conclusions and suggestions that are helpful to the design of the auction mechanism.In view of the literature we have consulted,this is the first time that the spatial location model is introduced into the auction study.The research of this paper can help to analyze and solve the auction problem of a class of goods or contracts related to transportation cost in the supply chain.On the other hand,it can reveal some new phenomena in the auction with the diversity of items and promote the practical application of auction theory.