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...
... middle of paper ...
...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.
In 1994, Internet commerce (e-commerce) was miniscule. One day in the spring of 1994, Bezos who was already crazy about computers observed that Internet usage was increasing geometrically and more and more people were getting excited about its astounding commercial possibilities. A few inventors were already trying to make use of the new technology. Bezos saw an opportunity for a new sphere of commerce, and immediately began considering the possibilities. The thought foremost in his mind: "What is it that users cannot get easily offline that will sell online?"
Senn, J. A. (2000). Electronic commerce: Beyond the “dot com” boom. National Tax Journal, 53(3), 373-383.
The object of this paper is to create a balanced scorecard for eBay based on the optimal approach for running an Internet-based auction business. Cases for both sides on whether eBay has met the metric goals as detailed in the balanced scorecard will be discusses along with a discussion on which argument was more compelling and the reasons why.
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)
eBay has built an online person-to-person trading community on the Internet, using the World Wide Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category.
Krishnamurthy, S. (2004). A comparative analysis of eBay and Amazon [PDF file]. Retrieved from http://faculty.washington.edu/sandeep/d/amazonebay.pdf
The Economist (1997a). "A Survey of Electronic Commerce." May 10; pages 1-18. Author unknown. Taken from above Kotha essay.
E-marketing is a fast growing and rapid platform for any form of business. EBay has been highly successful over recent years and this is a perfect example of an online business. The internal and external environments are constantly changing and in order to keep up with these changes, businesses and organisations must make relevant changes, and generate new strategies to keep up with contemporary developments in e-marketing and to also maintain their position in their market in comparison to their competitors.
“EBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. EBay offers different opportunity to its customers to purchase an item. In fact, they also included the possibility of purchasing a product instantly with the option “Buy it now”. The major auction for the company is basically to offer a concept of purchasing and selling products online.” (Profile: eBay, Inc, 2014)
As I read through some of the discussion threads of eBay sellers, I realized how technology has allowed us to form international community of consumers with established rules and regulations. Doing business through eBay still seems a little risky but the fact that the majority of people still live ethically has allowed e-bay to succeed. Like in every society there are people that still try to circumvent the system and will try to get away with unethical activities. Through the discussion forum, eBay sellers have established an environment in which anyone can communicate the problems they have encountered and ask for advice for handling those situations. Sellers also have the option to offer suggestions on how to make the selling process better. Some of the issues that I found interesting in nature were how e-bay sellers handle non-paying bidders, feedback concerns, and international selling.
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.
Lin, Z., Li, J. (2005). The Online auction market in China: A Comparative between Taobao and eBay. ACM International Conference proceeding Series (113): 123- 129.
EBay is a website marketer favored worldwide. A seller who wants to trade has to list the item on eBay mostly anything from cars, books, spare parts to antiques. The seller chooses whether to agree to a bid for the item on the list or offers the items at a fixed price. In an auction, the seller opens a specified price that remains on the site for a couple of days when buyers bid on the item and when the listing ends the buyer with the higher bids wins. The first buyer willing to pay the seller's price gets the item. Selling on the website comes in various forms and this website is favored by countries
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