Agent-level determinants of price expectation formation in online double-sided auctions

Abstract

For an auctioneer, it is of utmost importance to design an auction mechanism that gives robust price signals which in turn increases auction performance. Information architecture and forward trading platforms are the two main information sources that could generate these price signals. However the traditional presumption that agents form rational expectations by accurately processing all available information in the online trading environment and forming their expectations accordingly has found mixed support. We develop a research model that empirically tests the impact of agents' attitudes on their price expectation through their trading behaviour. Using a unique data set, we tested our hypotheses on real ex ante forecasts, evaluated ex post, in an electricity day ahead auction context. This paper is one of the first to take an information-based view to study the trading behaviour of agents and their price expectations, with results that suggest a reconsideration of some of the conventional concepts.

A review of supply chain transparency research: Antecedents, technologies, types, and outcomes

“…However, as Avci et al. (2019) note, increased information sharing does not necessarily lead to more rational (i.e., less biased) expectations of participating agents. Openness is the orientation of an SC or company pertains to stakeholders' overall attitude and inclination toward enabling and facilitating the availability of information within and beyond the SC.…”

“…The outcomes/impacts of such sharing can be estimated for a particular instance of sharing (e.g., Colicchia et al., 2019; Li, 2002). For instance, most auctions (and game theory) research articles allow for a rigorous mathematical modeling evaluation of the effect of information sharing (e.g., Avci et al., 2019; Greenwald et al., 2009; Hackney et al., 2007). A company can decide on the timing – before or after an auction – of revealing information, what information to make available, and to whom.…”

Understanding Chinese consumers' pre-purchase value expectations: the role of country of origin effect

“…Next, monetary price expectation is defined as the (monetary) price of a service to the expected quality as determined by the consumer (Avci et al , 2019). On the other hand, behavioural price expectation refers to the amount of anticipated time and effort that customers need to exert in searching for and purchasing the service (Zeithaml, 1988).…”

Bidding on a Peer-to-Peer Energy Market: An Exploratory Field Study

“…For personal use only, all rights reserved. dynamic price incentives by actively scheduling loads to balance the energy system on a local level (Ketter et al 2018, Avci et al 2019, Bollinger and Hartmann 2020. In particular, smart agents controlling storage devices according to the individual household's preferences can leverage real-time market signals to improve the environmental and monetary impact of P2P trading (Ansarin et al 2020).…”