Sealed First-price Auction pricing approach in the application of stumpage markets

At first, this paper shows the situation of the stumpage transactions in China, and according to the characteristics of the stumpage products and a variety of auctions, it uses the theory of the Sealed First-price Auction to show the structure of stumpage markets and the game analysis of two Bidders. Secondly, this paper establishes the auction pricing model to analyze the bidders´ strategies, uses Bayesian-Nash Equilibrium in stumpage market transactions to price the stumpage products, and endues the sale price of the deal applying Sealed First-price Auction theory. Finally it has solved the problem that the current pricing methods are not suitable in the process of stumpage product on the move.