Case Article—Bidding on Priceline

INFORMS Transactions on Education

Gouren Zhang¹  John G. Wilson¹  Chris K. Anderson² 

[1] Richard Ivey School of Business, University of Western Ontario, London, Ontario, N6A 315 Canada;School of Hotel Administration, Cornell University, Ithaca, New York 14850

关键词: auctions;    pricing;   

DOI  :  10.1287/ited.1080.0016ca

学科分类：社会科学、人文和艺术（综合）

来源: INFORMS

【 摘 要 】

Priceline.com is an Internet-based corporation offering services (airline tickets, hotel rooms, rental cars, and home mortgages) with the option for consumers to dictate prices. Priceline's original success stemmed from its innovative “name your price” approach whereby consumers bid for service with Priceline to find a willing provider at the bid price. Consumers are only allowed to bid once on a service so they must be strategic in bidding—bid too low and potentially lose out on service, bid too high and overpay for the service. While they are only allowed to bid once per product, bidders can slightly alter their service and potentially re-bid in an effort to get new information (from failed attempts)—such alterations may include a different class of hotel (3 star versus 4), a flight with 1 stop versus direct, or (as in the case below) a different class (economy versus luxury) of rental car. The case is designed to cover a broad range of topics while introducing students to auctions. The case teaches str...

【 授权许可】

CC BY