Optimal design of reserve price in online auction
By introducing the factors of online auction like the entry fee, the commission, the penalties and the stochastic arrival of bidders, the dissertation formulates online auctions' decision-make model of maximization of seller's expected revenue in open reserve price and private reserve price respectively, and studies the online auction's optimal open reserve price and optimal private reserve price, and gives the general form of optimal reserve price. On the base of all these above, the optimal reserve price is analyzed, showing that the sellers' optimal open reserve price is the same to the optimal private reserve price, and the maximum expected revenues are equal.