Online art auctions with buyout prices are extensively applied as a modified form of art auctions for breaking the limit of fixed time auction ends and combining fixed-price selling with English auctions, while numerous problems exist in the real process of these auctions since reliable information on the bidding strategies is relatively rare. The purpose of this study is to analyze the bidding strategies in online art auctions with different buyout prices. After reviewing the auction theory

more »

... preceding studies on online auctions, this research paper builds a game model for online art auctions with fixed, temporary, and permanent buyout prices by expanding Vickery's independent private value model, elaborating on the optimal bidding strategy in each type of situation by comparing bidder's valuation and the buyout price. Furthermore, this paper proposes a threshold value to help a bidder understand his best move by considering if his valuation exceeds the threshold value and thus determining whether to choose the buyout option in an art auction.