Commission Strategy of the Auction House

摘要

In a SIPV model, when the commission proportion is not certain, but related with bargain price, generally, it is a linear function of the bargain price, this paper gives bidders' equilibrium bidding strategies in the first-and second-price auctions. We find that the equilibrium strategies in second-price auction are dominant strategies. For seller or auction house, whether the fixed proportion or the unfixed proportion is good is not only related with constant item and the linear coefficient of the linear function, the size of the fixed commission proportion, but also related with the value of the item auctioned. So, in the practical auctions, the seller and the auction house negotiated with each other to decide the commission rules for their own advantage.