An Approach to Efficient Trading Model of Hybrid Traders Based on Volume Discount

This paper proposes a new cooperation business model in which hybrid traders exist. We define hybrid traders as new traders on the Internet. Hybrid traders can become both buyers and sellers. We assume that hybrid traders do not have enough money. To buy items cheaply, hybrid traders cooperate with other traders. In regard to buying items, we consider a volume discount-based trading. We propose a mechanism in which trader cooperates, buys in a lot of goods, and increases own utility. Our mechanism adopts side payment to promote increasingly cooperation with traders. Cooperative traders commit participation based on a value of side payment. We extend mechanism which hybrid traders deal with multiple items. This mechanism shows new decision of side payment and proposer’s strategy.