Maximum Resolution Topology for Online Auction Markets

Abstract

A topological model of an online auction market is a simultaneous graphical display of all the dimensions of its relevant database, providing a geometrical shape as a visually descriptive statistics of the market at any particular instance of its development. In particular, various dimensions were identified for constructing a multi‐attribute dichotomy that can help discern relative advantages to buyers and sellers, using only available, operational data, and without expert knowledge of the items involved or the prices attained. With a reference subset of prejudged cases, the configuration of the dimensions and the angles among them can be optimized for a topology that maximizes the resolution of such dichotomies. The approach is illustrated in a global comparative study of four markets in five countries. It can be a useful tool for data mining and visualization in the design, study, and analysis of online auction markets.

Keywords:

• online auctions
• topological modeling
• market analysis
• data mining
• visualization
• multi‐attribute dichotomy

ACKNOWLEDGEMENTS

This work is partially supported by the Hong Kong RGC Competitive Earmarked Research Grant (CERG) Award: HKU 7126/05E. Nicole Man and Christina Yuen provided able assistance at critical junctures of this project. The comments by two anonymous reviewers led to substantial improvement in the presentation of this material.