Study of fraud behaviors in online auction based on game theory

Abstract

In this paper, a shill bidding regulatory game model is designed, which considers the cost factor and detection accuracy at the same time, and quantifies these two factors base on literature [1]. It analyzed the possible decision behaviors of regulator and seller's decision under the interdependence case and the mixed Nash equilibrium problem. It obtained the optimal penalty factor analytic by building the game and researching the strategies between regulatory authorities and sellers according to which the regulatory authorities punish the sellers using the shill bidding.