Abstract:

In this age internet is used as a market platform in which buyers and sellers convene and the price is transparently shared with everyone. The Dutch auction builds up a substantial marketing mechanism particularly for the sale of products which have durability problems. The pricing mechanism in which appeared in web based sales of second hand cars and Dutch auction overlap when some circumstances are considered. On the other hand, in regard to future situation the Markov chain that enables the estimation with sizably limited data makes it possible to analyze the Dutch auction mechanism mathematically. Designed Markov model indicates that price-cutting in web based sales of second hand cars will end after a few times. Keywords: Dutch Auction, Markov Chains, Used-Car Market.

Keywords: