Introduction o The rational-bidder based studies in auctions1 have been vastly investigated in 1980s and 1990s in Economy Journals. The Economists believe that the sellers prefer auctions in which the barriers of entry are rather low which would lead to higher utility for the seller (Bulow, Klemperer 2009). However, these studies are mainly focused on big-scale auctions. Big-scale auctions are the type of auctions in which bidders are large companies. On the other hand, on line auctions have properties which differentiate them from classical auctions. On line auction has become one of the most successful businesses since emergence of internet. Unlike many other web-services which lost their popularity (Ariely& Simonson 2005), even after dot-com bubble. “The best example is eBay, which by 2001 had become a dominant platform for consumer auctions, and was the third-ranked web site in terms of time spent by consumers2”(Linav, et al.,2013). “Its marketplace transaction volume reached 9.3 billion dollars in 2001 (it has subsequently risen to over $67 billion as of 2012)” (Linav, et al.,2013).
Long before online auctions, people used auctions for almost any kind of goods and services (Ockenfels &Reiley &Sadrieh,2006). Previous studies about history of auctions report (Cassady,1967) that auctions have always been a crucial and prevalent factor in our economy. Although one of the advantages of online auction is that the bidders do not need to travel long distances to take part in
1 In this paper, whenever we refer to auction, we mean second-bid English auctions. For more information the following paper could a good source : Auction theory: a guide to the literature ( Klemperer, 2009)
2 Source: http://blog.compete.com/2007/10/01/top-rank...
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...tion is necessary.
Need for data which include time as a parameter
Classification of Data could affect the result
The price range of products are not that broad
Bidders approach cannot be measured (optimist VS Pessimist)
Lack of inclusion of endowment effect( The bidders do not bid actual money therefore they skip stage of entry/choice)
To conclude, we believe that despite the current trend of online auctions, this type of web-based service is still the most predominant within e-commerce. Introduction of new fields such as information economic might help researcher to combine theoretic material in-hand with their empirical evidence. We also believe that behavioral studies might help sellers and auctioneers to enhance the classification of information they produce the bidders with. Further investigation would be followed in MIS, Marketing and Economic area.
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)
7.Gregory Wester, Stephen Franco. The Internet Shakeout 1996. Interactive Commerce Research Bulletin. the Yankee Group, Boston, MA. December 1995
Proposed mission for eBay is to be the largest online marketplace that facilitate customer’s (1) shopping experience (2) from beginning to end, with a smart, searchable website(4), easy-to-follow instructions(7), clear and secure payment methods (5,6,8) at the same time enabling economic opportunity around the world(3) together with our associates(9).
eBay needs to transfer its competitive advantage in the online auction industry into the area of
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.
Online Auction e.g. eBay. In common with new online retail brands, before the emergence of Internet technologies, this concept was not possible. Essentially eBay is a Consumer-to-Consumer (C2C) business. For more information on how online auctions work, see the lesson on eMarketing and price.
Inventories can also be depicted, and quantities listed. With the proper programming, once an item is ordered, it is subtracted from the inventory, thus showing the proper amount that is actually available for sale. The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
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.
According to the NFC undelivered or misrepresented goods or services from auction websites made up 89% of scam complaints in 2003 (Internet Scams). In his article entitled “Sleaze Bay,” David Freedman explains why auction websites are so appealing for fraudsters: “As is true of much of the Web, the characteristics that make auction sites so appealing—anonymity, speed, low overhead, access to millions of people, lack of outside regulation, an ability to interact from a great distance—are the very same characteristics that make rip-offs so easy” (1). According to Freedman, sites such as E-bay may be subject to shill bidding; a practice against E-bay rules that is often illegal. Shill bidding involves a seller, their friends, family, or other sellers bidding to entice other bidders to join and raise their profits. This is based on the idea that “…bi...
One of the fundamental factors that has affected the process of economic globalization is the improvements in the technology of transportation and communications. This has reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology. There is no doubt that advances in information and communications technology are the most important technological advances of the past quarter century (Mussa, 2000). By far, the most important and business altering advancement is the internet. There is evidence everywhere that the internet has greatly affected international trade. The internet has opened up the world, and brought it right into everyone's home and business. In addition, technology and the internet have greatly reduced the costs of doing business. Even the smallest operation can now go global via the internet at almost no cost. However, there are still some problems that face these e-commerce activities. These problems are shot-term challenges and can be met. The key issues center around two areas:
Priceline.com enables sellers to generate extra revenue without disrupting their existing distribution channels or retail pricing structures. In this sense it uses the Internet's communication and information abilities to turn customary retailing upside down; alternatively it opens up to the individual consumer a form of transaction which has previously only been open to corporate entities.
Advertising has been round for centuries; starting with print ads, then evolving into radio and TV adverts. Each form of advertisement requires several different strategies in order to make the advertisement effective and appealing to the consumer. With the ever popular rising of the usage of the internet, online advertisements have also become more popular. According to Dr. David Evans, who received his Ph.D. in Economics, e-commerce, or sales processed online, were equal to 34 billion dollars as of 2008. (Evans, 2) This amount has only grown and will continue to grow as the usage of the internet becomes more and more popular. The heart around this monumental sum of revenue is online advertising. Advertising agencies optimize their online
The Information revolution is changing our daily lives. With the rapid development of computers and the internet, online commerce has become quite common and plays an important role in the modern world. Online business has been booming in recent years. US online retail sales rose an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may be due to the growing number of consumers who shop online.
E-commerce is about two decades old, yet due to its fascinating dimensions, it remains a challenging area for researchers and professionals.
growth in usage by both consumers and businesses. The unique capabilities of the Internet has captured the attention of the marketing community. While a growing number of companies have or are interested in developing an Internet presence, there is still a great deal of uncertainty about it and the potential ethical issues associated with its use as a marketing medium. Although many businesses are acknowledging the importance of a Web site, but the potential ethical issues related to marketing on the Internet still having an uncertainty in this situation. Much less attention has been given to the business community's perceptions of the ethicalness of this new medium. The unique interactivity of the Internet has captured the marketing community's interest as a way to develop and enhance customer relationships and establish greater brand identity. Thus, many commercial services have become available on the Internet that allow consumers and organizations to interact electronically. These services include booking airline tickets online, buying books and compact discs, and receiving stock market information. Although the number of consumer users and commercial organizations navigating on this "information superhighway" is growing almost exponentially, the benefits of the Internet are not without drawbacks.