Session 8 online auctions Flashcards
models of electronic markets
model 1: bilateral negotiation (one buyer, one seller)
model 2: Sales Auctions (many buyers, one seller)
Model 3: reverse auctions (one buyer, many sellers)
Model 4: double auctions (Many buyers, many sellers)
characteristic of bilateral negotiation
most transacted goods on electronic auctions are hard to price
- reduce search costs
- procurement reach
characteristic of sales auctions
type 1 english auction: bid until surplus with auctioneer
type 2 Dutch auction: start with max surpls, until validation, with auction clock
type 3 Sealed bid auction (google search ads)
characteristic of reverse auctions
buyers submit a description of the requested product/service, seller can bid to provide….highest quality/price ratio
double auction
auction platform matching engine - e.g. stock market, gold, financial assets