SOABER: An Innovative Approach to Maximize Bidder Surplus in Simultaneous Online Art Auctions

37 Pages Posted: 26 Nov 2010

See all articles by Mayukh Dass

Mayukh Dass

Texas Tech University - Area of Marketing

Wolfgang Jank

University of Maryland - Decision and Information Technologies Department

Galit Shmueli

Institute of Service Science, National Tsing Hua University, Taiwan

Date Written: November 25, 2010

Abstract

This paper presents a novel intelligent bidding system, called SOABER (Simultaneous Online Auction Bidder), which monitors simultaneous online auctions of high-value fine art items. It supports decision making by maximizing bidders’ surplus and their chances of winning an auction. One key element of the system is a dynamic forecasting model, which incorporates information about the speed of an auction's price as well as about the level of competition within and across other auctions. Other elements are a wallet estimator, which gauges bidders' willingness to pay, and a bid strategizer that embeds the forecasting model into a fully automated decision system. We illustrate the performance of our intelligent bidding system on an authentic dataset of online art auctions for Indian contemporary art. We compare our system with several simpler ad-hoc approaches and find it to be more effective in terms of extracted surplus and the resulting winning percentage.

Suggested Citation

Dass, Mayukh and Jank, Wolfgang and Shmueli, Galit, SOABER: An Innovative Approach to Maximize Bidder Surplus in Simultaneous Online Art Auctions (November 25, 2010). Available at SSRN: https://ssrn.com/abstract=1715166 or http://dx.doi.org/10.2139/ssrn.1715166

Mayukh Dass (Contact Author)

Texas Tech University - Area of Marketing ( email )

Box-42101
Rawls College of Business
Lubbock, TX Lubbock 79409
United States
806 742 1924 (Phone)

HOME PAGE: http://www.mdass.com

Wolfgang Jank

University of Maryland - Decision and Information Technologies Department ( email )

Robert H. Smith School of Business
4300 Van Munching Hall
College Park, MD 20742
United States
301-405-1118 (Phone)

HOME PAGE: http://www.smith.umd.edu/faculty/wjank/

Galit Shmueli

Institute of Service Science, National Tsing Hua University, Taiwan ( email )

Hsinchu, 30013
Taiwan

HOME PAGE: http://www.iss.nthu.edu.tw

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