First off, defining what auction means is necessary. An auction refers to a mechanism of trading rules for exchange. It involves buying and selling of good or services by putting them up for bidding, taking the bids and selling the auctioned item to the highest bidder. Maurer and Barroso (2011) defined auction as an allocation technique which is based on the evaluation criterion as set by the auctioneer and a set of rules released to the public intended to reserved or award objects or products such as contract on the basis of financial bidding. Auctions promote transparency since the rules are set and released by the auctioneers and disseminated to the public gathering possible bidders prior to the auction. The auctioned items are awarded to the highest bidder based on the monetary bids. Auctions involved three key rules namely bidding, clearing and pricing. In bidding rules, it explains how offers should be designed and how and when can it be submitted. The bidding rules specifies on how the bid must be submitted whether it should be submitted only once just like in a sealed-bid auction or they can respond successively to the bids by other participants just like a dynamic auction. For the clearing rule, it defines on how bids will be compared with each other in order to determine the auction winner. The pricing rule sets the price at which the auction will be closed. A typical auction set-up involves the auctioneer as the seller who aims to maximize the price of the item being sold. However, in the auction that is to be discussed in this paper, it is designed for auctioneer who wants to buy or procure the products known as reverse or procurement auction.
This paper aims to discuss the basics of auction designs by considering an...
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...lock auction are also an essential part of the auction. The starting price will determine the number of bidders that will create competition. The rounds created and the rules in each of the rounds will determined the clearing price based on the round prices. And lastly, the information disclosure policy ensures that the product information is at minimum to maximize the intended value of the product by the bidders.
The ambiguity of the process is also eliminated in the descending clock auction. The use of the information technology greatly helps the reduction of the complexity of the product. The auction’s features created an effective and essential manner of auction. The design of the auction may be improved by enhancing the programs and rules as well as the software or technology used especially when handling products with large quantity of excess in supply.
As the United States economy struggles through a sluggish time with the stock market dropping and unemployment rising, being competitive in the job market has become extremely important among professionals. Engineers are no exception. For most engineering firms, being competitive and successful requires obtaining design projects offered by companies in other fields. These projects can range from designing heating and ventilation systems for office buildings to water systems for cities to computer networks for businesses—the list of possibilities and disciplines is extensive. To get these jobs, engineers must make a bid proposal for the project. Bidding involves estimating the entire cost of the project, including the designing and building processes, as well as the materials and labor. Usually, the company with the lowest bid and the best plan gets the job. The ethical issue in this process is determining the cheapest building materials and construction procedures possible without compromising public safety.
There are no statutory guarantees available at traditional auction using auctioneer if the goods purchased do not fit for the purpose, do not correspond with the description and do not have an acceptable quality. (ACL s 2)
Imagine an older, online business where everyone was happily buying and selling from it. People are auctioning off valuables and goods while buying a range of items for a cheaper price. It stays this way on the same black and white website to this very day. EBay has been around since it was “Formed as a sole proprietorship in September 1995," via California. Its platform is meant to allow buyers and sellers with internet access to connect globally. It determines its success by the success of the people buying and selling through it. Unfortunately, today more people are choosing other online sellers. These competitors, similar to eBay, have bolder advertisements, offer well-matched bargains, as well
government to set the minimum price and amount sold of a good at the market.
This article can be analyzed in an economical point of view and who it’ll effect, whether the buyer or seller, and the incidence of tax, in which who will bear the tax.
One principle of fair trade is the agreed minimum price that is set above the market price. Each fair-trade
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
This is followed with the “real-time society”. Nowadays time plays a much more important role and we live in a generation of speed. Nobody wants to wait for their products and therefore companies want to under quote when it comes to time. “In the real-time economy prices are set second by second, companies compete on how fast they can be to develop, make and launch products.
English auction (EN) – where bidders outbid each other until no-one else is willing to bid against the current bid. The participant who placed the current bid wins the auctions and pays the bid amount.
Priceline.com is an e-commerce site which when founded in 1998, brought forth a new angle to conduct business. Traditionally marketers scan the market to determine which prices purchasers are willing and able to pay for products or services. The sellers then offer their product for a price which meets their internal criteria. With priceline, instead of the seller setting the price, the buyer makes an offer of what he or she is willing to pay and sellers compete for the buyers business. This innovation represented a first in that general non commercial consumers have never been able to name the price they will pay and have sellers respond.
Express Parts, Inc. made a proposal about an internet-based trading system which would enable distributors to post inventories and prices to an internet platform and thus give customers the opportunity to shop for prices.
The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
The price system is a means of organizing economic activity. It does this by coordinating the decisions of consumers, producers, and owners of productive resources. Millions of economic agents who have no direct communication with each other are led by the price system to supply each other's wants. Every economic system has three functions. In a decentralized usually private enterprise economic system, the price mechanism is the instrument by which these functions are performed.
Introduction In this essay I am going to analyse the workings and effectiveness of the price mechanism as a means of allocating and reallocating scarce resources. I am going to do this by comparing the free market economy with its alternatives and by looking at how government intervention allows the price mechanism to carry on working. I am also going to look at the role that we, as consumers, play in the workings of the price mechanism.