Title: Simulating internet auctions online: effects of learning and experience

Authors: Avi Noy, Sheizaf Rafaeli

Addresses: The Graduate School of Business, University of Haifa, Mt. Carmel, Haifa 31905, Israel. ' The Graduate School of Business, University of Haifa, Mt. Carmel, Haifa 31905, Israel

Abstract: This is an empirical study of the effects of learning and experience on bidding behaviour in repeated simulated internet English and Dutch auctions. First, we introduce a simulation framework for the learning and research of behaviour in internet auctions. In this online simulation framework, human participants play against simulated bidders. Later, we describe the characteristics, abilities and limitations of this framework. In the second part of the article we report on a study, conducted using the same environment, of the effects of learning and experience on bidding behaviour in repeated English and Dutch auctions. We found evidence for a strategy change over time and compared the difference in learning between the two auction models.

Keywords: internet auctions; bidding behaviour; auction simulation; learning; experience; auction modelling; UK; United Kingdom; The Netherlands; Holland; online auctions; strategy.

DOI: 10.1504/IJSPM.2005.007646

International Journal of Simulation and Process Modelling, 2005 Vol.1 No.3/4, pp.161 - 170

Published online: 30 Aug 2005 *

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