Allocation and pricing of group-buying based on the fixed bidding

Online group-buying is a popular business mode based on Internet. Group-buying websites can get discount for goods or services through promotion and other means which used to gather enough number of people, and sellers can also sell more quantities of goods. However, the existing group-buying mode is that all buyers unify the fixed pricing, the mechanism cannot distinguish the contribution of different buyers and motivate buyers report truthfully. In this paper, an online group-buying pricing method based on buyer’s fixed bidding is proposed in view of the influence of buyer’s bidding price and demand quantity on the participants’ group in the group-buying mechanism. We introduce the concept of relative importance to the allocation and pricing of mechanisms and propose a new mechanism named Fixed bids Truthful Mechanism for Group Buying (FTM4GB) based on correlation importance. At the end of the paper, we prove the economic attributes of individual rationality, incentive compatibility and budget balance.

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