Research on Pricing Strategy of Online Reverse Auction Based on Complete Information

Abstract

Aiming at the problem of reverse auction which involves one buyer and multiple sellers in procurement market, this paper studies about online reverse auction via internet during which different sellers arrive at different time and bid, and the buyer makes decision whether to purchase after receiving each bid. And then, the random pricing strategy of online reverse auction is researched. After the compare with single pricing strategy, it shows that the random pricing strategy using the market information to make a procurement price can avoid the waste of cost and incomplete procurement, and a case test is provided in the end.
Key words: Online reverse auction; Random pricing strategy; Competitive analysis