Unlike perfect competitive markets, in oligopoly electricity markets due to strategic producers and transmission constraints GenCos may increase their own profit through strategic biddings. This paper investigates the problem of developing optimal bidding strategies of GenCos considering participants’ market power and transmission constraints. The problem is modeled as a bi-level optimizati...

Shill bidding in English auction is the deliberate placing bids on the seller’s behalf to artificially drive up the price of his auctioned item. Shill bidding has been known to occur in auctions of high-value items like art and antiques where bidders’ valuations differ and the seller’s payoff from fraud is high. We prove that privatevalue English auctions with shill bidding can result in a high...

P often observe others’ decisions before deciding themselves. Using eBay data for DVD auctions we explore the consequences of neglecting nonsalient information when making such inferences. We show that bidders herd into auctions with more existing bids, even if these are a signal of no-longer-available lower starting prices rather than of higher quality. Bidders bidding a given dollar amount ar...

Beijing attempted to host both the 2000 and 2008 Olympic Games, being unsuccessful in 2000 and successful in 2008. This paper analyzes the influences the Olympic host announcements on Chinese stock market indices. Olympic host announcements may impact the bidding countries’ investors’ sentiments (mood effect) and their rational economic expectations (economic effect); thus, the bidding countrie...

We analyze the competition between auction houses to organize an English auction in the independent private value model with participation costs when the seller is unable to commit not to participate in the same way as any potential buyer through a shill bidding activity. The seller may prefer to contract with auction houses with higher fees since they make the shill bidding activity more costl...

In an agent-based online auction system, a bidding agent can automatically place bids on behalf of a human user according to a user-specified bidding strategy. Current implementations of bidding agents only support a set of simple predefined bidding strategies. In this paper, we introduce a formal bidding strategy model that supports specification of complex bidding strategies for autonomous bi...

Dominance truthful bidding is one of the most desirable features in auction design. In the offline setting, a common technique for ensuring truthful bidding is to start with the VickreyClarke-Groves(VCG) mechanism. However, many difficulties arise when implementing this scheme to an online auction. The main purpose of this paper is to survey recent literature aimed at designing truthful mechani...

Shill bidding has increased substantially with the explosion in the number of online auctions. For English auctions with conventional intermediation fee schedules and a continuous increment of the bid, sellers may profit from shill bidding, which is illegal. To deter shill bidding, Wang et al.31 designed a mechanism — the shill-deterrent fee schedule (SDFS) which makes shill bidding unprofitabl...

1567-4223/$ see front matter 2011 Elsevier B.V. A doi:10.1016/j.elerap.2011.12.003 ⇑ Corresponding author. E-mail addresses: [email protected] (F. Dong), sh [email protected] (H. Xu), [email protected] (D. Majum Shill bidding has become a serious issue for innocent bidders with the growing popularity of online auctions. In this paper, we study the relationship between final prices of online auctions a...