THE EXPERIMENTAL APPROACH FOR EFFECT OF PREFERENCE ELICITATION MECHANISM ON THE EFFICIENCY OF AUCTION

Abstract

We study the effect of preference elicitation mechanisms on the efficiency of auction result using laboratory experiments. For transportation service and reservation systems, it is important for service providers to know the potential demand of users. However, the user interface and preference elicitation method can have impact on the elicitation result by users. In this study, we analyze the effect of preference elicitation mechanism on the users' eliciting behavior and the efficiency of auction result based on experimental approach. In addition, we show that our preference elicitation mechanism can reduce users' cost of bidding and it improves the efficiency of auction results.