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Time Constraints for Sellers in Electronic Markets
Abstract
Electronic markets provide virtual places for negotiation over the exchange of products. In such places entities representing buyers and sellers can interact and agree upon a product price. Both parties try to maximize their profit. The authors model such an interaction as a finite horizon bargaining game and try to quantify the maximum time of seller participation in the game. The estimated deadline indicates until when the interaction is profitable for the seller. The authors’ model defines the appropriate value for a patience factor which finally results in the seller deadline fully adapted in each product characteristics.
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