A Multi-attribute Auction Model for Online Digital Goods

Different form the traditional online digital goods model, this paper considers multi-attribute and online characters of digital goods. A novel on-line auction model is provided to solve the asymmetric information problem between the sellers and buyers when there are multiple decision variables. The price-performance value is introduced into this model to help the buyers to evaluate the multi-attribute digital goods. Furthermore, two auction strategies are present for the buyer, together with their competitive ratios. Finally, the numerical examples are given to illustrate the performance of these strategies by different competitive ratios.