Title: Auction game of agro-product under cobweb phenomenon of supply and demand

Authors: Chipem Zimik; Prem Prakash Mishra

Addresses: Department of Science and Humanities (Mathematics), National Institute of Technology Nagaland, Chumukedima – 797103, Nagland, India ' Department of Science and Humanities (Mathematics), National Institute of Technology Nagaland, Chumukedima – 797103, Nagland, India

Abstract: Auction of agro-product between buyers and a farmer deals with first-price auctions in the situation of the cobweb model of supply and demand. The first price bidding auction lies in the neighbourhood of a balanced price of the indivisible agro-product. The selection of bid price holds the Weibull probability density function. We measure the available agro-product at the balance point of demand and supply which is associated with the balanced price. A new computational approach has been employed to obtain the optimum expected bidding value to get the win as well as the expected revenue earned by the farmer in the first price auction of agro-products under cobweb nature price fluctuations.

Keywords: agro-product; cobweb phenomenon; first-price auction; Weibull distribution; inventory level.

DOI: 10.1504/IJBFMI.2025.142956

International Journal of Business Forecasting and Marketing Intelligence, 2025 Vol.10 No.1, pp.119 - 139

Received: 27 Aug 2023
Accepted: 31 Aug 2023
Published online: 02 Dec 2024 *

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