To help in decision making, buyers in online shopping tend to go through each product features, functionalities, etc. provided by vendors and reviews made by other users, which is not an effective way when confronting loaded of information and especially if the buyers are beginner users who have limited experience and knowledge. To deal with these problems, we propose a framework of purpose-ori...

This paper studies optimal pricing policies for a family of substitute perishable products with demand correlation. Potential buyers arrive according to an exogenous stochastic Poisson process. At each demand epoch, the arriving customer observes the set of substitute products for which there is still inventory available together with their corresponding prices. Based on this information, the c...

The endowment effect--the tendency for owners (potential sellers) to value objects more than potential buyers do--is among the most widely studied judgment and decision-making phenomena. However, the current research is the first to explore whether the effect varies across cultures. Given previously demonstrated cultural differences in self-construals and self-enhancement, we predicted a smalle...

In this paper, we develop a detailed bidding strategy for selling agents in electronic marketplaces, in a setting where buyers and sellers have incentives to be honest, due to a particular framework for trust modeling. In our mechanism, buyers model other buyers and select the most trustworthy ones as their neighbours to form a social network which can be used to ask advice about sellers. In ad...

Precise asking-prices (e.g., $249,800), compared with round ones $250,000), are stronger anchors, leading buyers to counter closer the asking-price. This ‘precision effect’ is driven by (i) higher evaluation of seller's competence, and (ii) using a finer-grained numerical scale when asking-price precise round. But more susceptible they take perspective? If so, what underlying mechanisms this in...

We design algorithms for computing approximately revenue-maximizing sequential postedpricing mechanisms (SPM) in K-unit auctions, in a standard Bayesian model. A seller has K copies of an item to sell, and there are n buyers, each interested in only one copy, who have some value for the item. The seller must post a price for each buyer, the buyers arrive in a sequence enforced by the seller, an...