IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v161y2022icp88-106.html
   My bibliography  Save this article

Modelling bidding behaviors in shared parking auctions considering anticipated regrets

Author

Listed:
  • Xiao, Haohan
  • Xu, Meng

Abstract

A novel behavioral model for auction-based shared parking market is proposed in this study, in which anticipated regrets are incorporated to investigate the interdependency between parking behaviors and psychological factors. Two types of participants’ anticipated regrets about winning and losing, which affect the bid prices for parking, are first considered in the proposed model. Four goals of normative, hedonic, gain, and economical are developed from the conceptional goal-framing theory to address the motivational explanation for participants’ behaviors of changing bids. Welfare losses induced by these goal frames are further investigated and simulated. Results show that the normative goal and the combination of the gain goal and the economical goal are recognized as preferred goals for the shared parking auction market. Managerial implications of setting a market entry threshold to exclude certain participants and guiding participants to change from diverse goals to preferred goals are proposed to help reduce welfare loss for sustainable development.

Suggested Citation

  • Xiao, Haohan & Xu, Meng, 2022. "Modelling bidding behaviors in shared parking auctions considering anticipated regrets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 88-106.
    • Handle: RePEc:eee:transa:v:161:y:2022:i:c:p:88-106
    DOI: 10.1016/j.tra.2022.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856422001161
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2022.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Theodore L. Turocy & Elizabeth Watson, 2012. "Reservation Values and Regret in Laboratory First-Price Auctions: Context and Bidding Behavior," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1163-1180, April.
    2. David E. Bell, 1983. "Risk Premiums for Decision Regret," Management Science, INFORMS, vol. 29(10), pages 1156-1166, October.
    3. Richard Engelbrecht-Wiggans & Elena Katok, 2008. "Regret and Feedback Information in First-Price Sealed-Bid Auctions," Management Science, INFORMS, vol. 54(4), pages 808-819, April.
    4. Xiao, Haohan & Xu, Meng & Yang, Hai, 2020. "Pricing strategies for shared parking management with double auction approach: Differential price vs. uniform price," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    5. Sun, Daewon & Li, Erick & Hayya, Jack C., 2010. "The optimal format to sell a product through the internet: Posted price, auction, and buy-price auction," International Journal of Production Economics, Elsevier, vol. 127(1), pages 147-157, September.
    6. Zeinab Rezvani & Johan Jansson & Maria Bengtsson, 2018. "Consumer motivations for sustainable consumption: The interaction of gain, normative and hedonic motivations on electric vehicle adoption," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1272-1283, December.
    7. Ning, Yu & Yan, Mian & Xu, Su Xiu & Li, Yina & Li, Lixu, 2021. "Shared parking acceptance under perceived network externality and risks: Theory and evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 1-15.
    8. Xiao, Haohan & Xu, Meng & Gao, Ziyou, 2018. "Shared parking problem: A novel truthful double auction mechanism approach," Transportation Research Part B: Methodological, Elsevier, vol. 109(C), pages 40-69.
    9. Geng, Jichao & Long, Ruyin & Chen, Hong, 2016. "Impact of information intervention on travel mode choice of urban residents with different goal frames: A controlled trial in Xuzhou, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 134-147.
    10. Jiang, Zhong-Zhong & Fang, Shu-Cherng & Fan, Zhi-Ping & Wang, Dingwei, 2013. "Selecting optimal selling format of a product in B2C online auctions with boundedly rational customers," European Journal of Operational Research, Elsevier, vol. 226(1), pages 139-153.
    11. Ratan, Anmol & Wen, Yuanji, 2016. "Does regret matter in first-price auctions?," Economics Letters, Elsevier, vol. 143(C), pages 114-117.
    12. Perlaviciute, Goda & Steg, Linda, 2014. "Contextual and psychological factors shaping evaluations and acceptability of energy alternatives: Integrated review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 361-381.
    13. Richard Engelbrecht-Wiggans, 1989. "The Effect of Regret on Optimal Bidding in Auctions," Management Science, INFORMS, vol. 35(6), pages 685-692, June.
    14. David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
    15. Liang, Jyun-Kai & Eccarius, Timo & Lu, Chung-Cheng, 2019. "Investigating factors that affect the intention to use shared parking: A case study of Taipei City," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 799-812.
    16. Xu, Su Xiu & Cheng, Meng & Kong, Xiang T.R. & Yang, Hai & Huang, George Q., 2016. "Private parking slot sharing," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 596-617.
    17. Bekiros, Stelios D., 2010. "Fuzzy adaptive decision-making for boundedly rational traders in speculative stock markets," European Journal of Operational Research, Elsevier, vol. 202(1), pages 285-293, April.
    18. Grether, David M & Plott, Charles R, 1979. "Economic Theory of Choice and the Preference Reversal Phenomenon," American Economic Review, American Economic Association, vol. 69(4), pages 623-638, September.
    19. Shao, Saijun & Xu, Su Xiu & Yang, Hai & Huang, George Q., 2020. "Parking reservation disturbances," Transportation Research Part B: Methodological, Elsevier, vol. 135(C), pages 83-97.
    20. Theodore L. Turocy & Elizabeth Watson, 2012. "Reservation Values and Regret in Laboratory First‐Price Auctions: Context and Bidding Behavior," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1163-1180, April.
    21. Emel Filiz-Ozbay & Erkut Y. Ozbay, 2007. "Auctions with Anticipated Regret: Theory and Experiment," American Economic Review, American Economic Association, vol. 97(4), pages 1407-1418, September.
    22. Oikonomou, V. & Becchis, F. & Steg, L. & Russolillo, D., 2009. "Energy saving and energy efficiency concepts for policy making," Energy Policy, Elsevier, vol. 37(11), pages 4787-4796, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lequn Zhu & Ran Zhou & Xiaojun Li & Linlin Zhang, 2023. "An Evolutionary Game Analysis of Shared Private Charging Pile Behavior in Low-Carbon Urban Traffic," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    2. Zhou, Xizhen & Lv, Mengqi & Ji, Yanjie & Zhang, Shuichao & Liu, Yong, 2023. "Pricing curb parking: Differentiated parking fees or cash rewards?," Transport Policy, Elsevier, vol. 142(C), pages 46-58.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Engelbrecht-Wiggans & Elena Katok, 2008. "Regret and Feedback Information in First-Price Sealed-Bid Auctions," Management Science, INFORMS, vol. 54(4), pages 808-819, April.
    2. Richard Engelbrecht-Wiggans & Elena Katok, 2009. "A Direct Test of Risk Aversion and Regret in First Price Sealed-Bid Auctions," Decision Analysis, INFORMS, vol. 6(2), pages 75-86, June.
    3. Ning, Yu & Yan, Mian & Xu, Su Xiu & Li, Yina & Li, Lixu, 2021. "Shared parking acceptance under perceived network externality and risks: Theory and evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 1-15.
    4. Sascha Füllbrunn & Dirk‐Jan Janssen & Utz Weitzel, 2019. "Risk Aversion And Overbidding In First Price Sealed Bid Auctions: New Experimental Evidence," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 631-647, January.
    5. Diecidue, Enrico & Somasundaram, Jeeva, 2017. "Regret theory: A new foundation," Journal of Economic Theory, Elsevier, vol. 172(C), pages 88-119.
    6. Yan, Qianqian & Feng, Tao & Timmermans, Harry, 2023. "A model of household shared parking decisions incorporating equity-seeking household dynamics and leadership personality traits," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    7. Zheng, Jiakun, 2021. "Willingness to pay for reductions in health risks under anticipated regret," Journal of Health Economics, Elsevier, vol. 78(C).
    8. Xiaohu Qian & Shu-Cherng Fang & Min Huang & Qi An & Xingwei Wang, 2018. "Reverse auctions with regret-anticipated bidders," Annals of Operations Research, Springer, vol. 268(1), pages 293-313, September.
    9. Tomas Sjöström & Levent Ülkü & Radovan Vadovic, 2017. "Free to Choose: Testing the Pure Motivation Effect of Autonomous Choice," Carleton Economic Papers 17-11, Carleton University, Department of Economics.
    10. Han Bleichrodt & Peter P. Wakker, 2015. "Regret Theory: A Bold Alternative to the Alternatives," Economic Journal, Royal Economic Society, vol. 0(583), pages 493-532, March.
    11. Peter Katuscak & Fabio Michelucci & Miroslav Zajicek, 2013. "Does Anticipated Regret Really Matter? Revisiting the Role of Feedback in Auction Bidding," CERGE-EI Working Papers wp487, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    12. Jiakun Zheng, 2021. "Willingness to pay for reductions in health risks under anticipated regret," Post-Print hal-04227414, HAL.
    13. Han Bleichrodt & Alessandra Cillo & Enrico Diecidue, 2010. "A Quantitative Measurement of Regret Theory," Management Science, INFORMS, vol. 56(1), pages 161-175, January.
    14. Andrew M. Davis & Elena Katok & Anthony M. Kwasnica, 2011. "Do Auctioneers Pick Optimal Reserve Prices?," Management Science, INFORMS, vol. 57(1), pages 177-192, January.
    15. Katuščák, Peter & Michelucci, Fabio & Zajíček, Miroslav, 2015. "Does feedback really matter in one-shot first-price auctions?," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 139-152.
    16. Jeeva Somasundaram & Enrico Diecidue, 2017. "Regret theory and risk attitudes," Journal of Risk and Uncertainty, Springer, vol. 55(2), pages 147-175, December.
    17. Meng Li & Yan Liu, 2022. "Managerial Regret and Inventory Pricing," Management Science, INFORMS, vol. 68(6), pages 4398-4414, June.
    18. Qin, Jie, 2015. "A model of regret, investor behavior, and market turbulence," Journal of Economic Theory, Elsevier, vol. 160(C), pages 150-174.
    19. Zhang, Guoquan & Li, Guohao & Shang, Jennifer, 2023. "Optimizing mixed bundle pricing strategy: Advance selling and consumer regret," Omega, Elsevier, vol. 115(C).
    20. Baojun Jiang & Chakravarthi Narasimhan & Özge Turut, 2017. "Anticipated Regret and Product Innovation," Management Science, INFORMS, vol. 63(12), pages 4208-4323, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:161:y:2022:i:c:p:88-106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.