...of online auctions, eBay. For assessor only | | 1. Content | | 2. Language structure | | 3. Language accuracy | | 4. Language: format & citing/referencing | | Overall: | | Advisory grade | | Assessor’s initials | | Maastricht UniversitySchool of Business & Economics | Place & Date: | Maastricht, 10-12-2012. | Name, initials: | Elemans, DP | ID number: | I6049135 | Study | International Business | Course Code: | EBC1009 | Group number | 36 | Tutor name: | Nikita Krugljakov | Writing tutor name: | Gaye van Denderen | Writing Assignment | Main Paper (Task 10) | Your UM email address: d.elemans@studentmaastrichtuniversity.nl Table of contents: 1. Introduction 2. Advantages and disadvantages of online auction 2.1 Advantages 2.2 Disadvantages 3. Different types of auctions 3.1 English auction 3.2 Dutch auction 3.3 First-price sealed bid auction 3.4 Second-price sealed bid auction 4. Different methods of bidding 5. Winner’s curve. 6. Example of bidding, using game theory. 7. Conclusion 8. Reference list 9. List of figures and tables 1. Introduction The internet itself started in the sixties in the United States. It has had massive growths and has given the population some very useful tools. The most current development is internet auction, also called online auction. Online auction is a service in which auction users or participants sell or bid for products or services via the internet. Sellers...
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...behavior In online auctions as opposed to traditional auctions Table of contents 1. Introduction 3 2. Online auctions as opposed to traditional auctions 3 3.1. Advantages online auctions 3 3.2. Risks of auctions 4 3. Buyers decision-making process in auctions 4 4. Type of auction 5 5.3. English auction 5 5. Economic theories 6 6.4. Rational behavior 6 6.5. Effects of irrational behavior 7 6. Conclusion 7 7. References 8 1. Introduction While the Internet has become an essential resource in the global economy, it has not only changed the way consumers think, behave, and make decisions, it has also changed businesses. Since the opportunity of reaching out to a mass-market was created as a result of the Internet and its easy accessibility, businesses are scrambling to take advantage of changes in their markets. An example of one of those businesses is an auction. As a result of the development of sophisticated software that enables businesses to buy and sell on the Internet under secure conditions, the e-business model of auctions, called online auction, has emerged. Online auctions adapt the traditional auctions to the instantaneous advantage of the Internet to reach new markets that were previously cost-prohibitive by reducing transaction costs. Advantages such as the size and scope of the audience are enabling Internet auctions to play a major...
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...1 Auction Based Mechanisms for Electronic Procurement T. S. Chandrashekar, Y. Narahari, Charles H. Rosa, Devadatta Kulkarni, Jeffrey D. Tew, and Pankaj Dayama Abstract— This article reviews recent research and current art in the area of auction based mechanisms for electronic procurement. These mechanisms are becoming increasingly relevant in modern day e-procurement systems since they enable a promising way of automating negotiations with suppliers and achieving the ideal goals of procurement efficiency, cost minimization, and agent based deployment. The survey delineates different representative scenarios in e-procurement where auctions can be deployed and describes the conceptual and mathematical aspects of different categories of procurement auctions. We discuss three categories: (1) multi-unit auctions for a single homogeneous type of item; (2) combinatorial procurement auctions where the buyer seeks to procure a bundle of multiple items and the suppliers bid for subsets of the bundle; and (3) multi-attribute auctions where the procurement decisions transcend cost considerations alone, to take into account lead times, logistics costs, and other important attributes. In all three cases, the winner determination problem and the determination of payments turn out to be interesting and challenging combinatorial optimization problems. In our review, we present mathematical formulation of procurement scenarios under each category, bring out the challenge involved in solving...
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...Game Theory∗ Theodore L. Turocy Texas A&M University Bernhard von Stengel London School of Economics CDAM Research Report LSE-CDAM-2001-09 October 8, 2001 Contents 1 What is game theory? 2 Definitions of games 3 Dominance 4 Nash equilibrium 5 Mixed strategies 6 Extensive games with perfect information 7 Extensive games with imperfect information 8 Zero-sum games and computation 9 Bidding in auctions 10 Further reading 4 6 8 12 17 22 29 33 34 38 This is the draft of an introductory survey of game theory, prepared for the Encyclopedia of Information Systems, Academic Press, to appear in 2002. ∗ 1 Glossary Backward induction Backward induction is a technique to solve a game of perfect information. It first considers the moves that are the last in the game, and determines the best move for the player in each case. Then, taking these as given future actions, it proceeds backwards in time, again determining the best move for the respective player, until the beginning of the game is reached. Common knowledge A fact is common knowledge if all players know it, and know that they all know it, and so on. The structure of the game is often assumed to be common knowledge among the players. Dominating strategy A strategy dominates another strategy of a player if it always gives a better payoff to that player, regardless of what the other players are doing. It weakly dominates the other strategy if it is always at least as good. Extensive game An extensive game (or extensive...
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...What is game theory? 2 Definitions of games 3 Dominance 4 Nash equilibrium 5 Mixed strategies 6 Extensive games with perfect information 7 Extensive games with imperfect information 8 Zero-sum games and computation 9 Bidding in auctions 10 Further reading 4 6 8 12 17 22 29 33 34 38 This is the draft of an introductory survey of game theory, prepared for the Encyclopedia of Information Systems, Academic Press, to appear in 2002. ∗ 1 Glossary Backward induction Backward induction is a technique to solve a game of perfect information. It first considers the moves that are the last in the game, and determines the best move for the player in each case. Then, taking these as given future actions, it proceeds backwards in time, again determining the best move for the respective player, until the beginning of the game is reached. Common knowledge A fact is common knowledge if all players know it, and know that they all know it, and so on. The structure of the game is often assumed to be common knowledge among the players. Dominating strategy A strategy dominates another strategy of a player if it always gives a better payoff to that player, regardless of what the other players are doing. It weakly dominates the other strategy if it is always at least as good. Extensive game An extensive game (or extensive form game) describes with a tree how a game is played. It depicts the order in which players make moves, and the information each player has at each decision point. Game A game...
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...Game Theory Game A game is a formal description of a strategic situation. Game Theory Game theory is the formal study of decision-making where several players must make choices that potentially affect the interests of the other players. Mixed Strategy A mixed strategy is an active randomization, with given probabilities, that determines the player’s decision. As a special case, a mixed strategy can be the deterministic choice of one of the given pure strategies. Nash Equilibrium A Nash equilibrium, also called strategic equilibrium, is a list of strategies, one for each player, which has the property that no player can unilaterally change his strategy and get a better payoff. Pay-Off A payoff is a number, also called utility, that reflects the desirability of an outcome to a player, for whatever reason. When the outcome is random, payoffs are usually weighted with their probabilities. The expected payoff incorporates the player’s attitude towards risk. Perfect information A game has perfect information when at any point in time only one player makes a move, and knows all the actions that have been made until then. Player A player is an agent who makes decisions in a game. Rationality A player is said to be rational if he seeks to play in a manner which maximizes his own payoff. It is often assumed that the rationality of all players is common knowledge. Strategic form A game in strategic form, also called normal form, is a compact representation of a game...
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... Auction Analysis Report invincible 6 analysis | BURWOOD 2015.4 Abstract This report is mainly focus on the quantitative analysis of a fine art auction held by the Charleston’s auction house. In analyzing the result from the auction, this report applies stochastic dominance and mean-variance methodology on comparing estimated price with realized price of auction items. Then this report investigates the ‘hot’ auction items and auction items failed to sell in this auction by statistical data, the result shows that there are around 15 items can be considered as a ‘hot’ item in auction and no item failed to sell in our observation. And then the report has a descriptive analysis about bidders on this auction, and by calculating the ratio of numbers of bidders and the auction items, it gives out that this auction is also a ‘hot’ auction. After that, an estimated profit for this auction is calculated based on realized price of auction items, and a T-estimation method is applied on estimating the 99% confidence interval of average annual profit of the Charleston’s auction house. In addition, there is a comparison between ebay’s average annual profit and the auction house’s average, with a result that ebay has an obviously larger profit than the profit house. 1. Introduction Auction, a trading mechanism, is a public selling process of items at their highest bid (The Free Dictionary). Formed in 1997, Charleston’s is the first and the most successful auction house that...
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...believed Google could set off a string of successful IPOs and put an end to a fouryear lull in technology offerings. 2 Executives at Google faced several questions in the following months, beginning with whether or not to sell shares to the public market.' If they made the decision to take the company public, what options did Google have for selling those shares? Was the traditional form of book-building through an investment bank necessarily the best course of action? As large investment banks were courting Google's potentially enormous business, management had to evaluate the different options available for a company ready to move forward. Ultimately, Google chose to sell its stock through W.R. Hambrecht + Co.'s OpenIPO, which was modeled on auction-based offering formats in France, Japan and elsewhere. In 2004, Hambrecht's track record of success was mixed at best and even today the future of this IPO format in the United States is far from certain. IN THE SPRING OF 2004, GOOGLE WAS ONE OF THE MOST TALKED-ABOUT I. HISTORY AND BUSINESS MODEL In 1995, Larry Page, 24, and Sergey Brin, 23, first met as Stanford University computer science graduate students.4 Their company Web site describes that first encounter as a clash of personalities that eventually led to their now-famous creative solution for retrieving relevant information from large sets of data.' At the time, search engines, for the most part, ranked search results by the number of hits for Assistant Professor of Business Administration...
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...Online Auction Industry Executive Summary Online auction industry was established when OnSale launched its first website that allowed companies and individuals to auction on electronics, sporting goods and other tools in 1995 (Yin, 2007). The Internet is the largest contributor of online auction industry. Buyers and sellers could interact readily thanks to the explosive growth of the Internet (Yao, 2009). Online auction industry mainly consists of eBay, Yahoo, and Amazon. Also, there are many smaller online auction websites that target on specific products and market segments. The risk of entry by potential competitors in online auction industry is moderate because of the small initial capital and technology investments required. The bargaining power of buyers is low and bargain power of suppliers is high. The threat of substitutes is moderate as online auction industry has unique person-to-person business model. The rivalry among existing firms is high due to the high demand volume and high operating cost, but none of them will lower prices to compete in price wars. eBay is the current leader of online auction industry with 94.5 million active users and total $9.2 billion net revenue at the end of 2010 (eBay, 2010). eBay has been successful because it focuses on person-to-person auction platform that allows buyers and sellers to access and make efficient trades. Yahoo and Amazon, however, effectively consolidated their resources from all of their business sections...
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...first mover theory and the last mover theory. It will show examples of real firms that have been either successful or a failure as they have employed one of the theories at their company. In my conclusion I will give my recommendation on which theory I think should be used and I will support that with not only details but also an example of a company that I feel validates my claim. The first mover theory can be summed up as “being the first in a new market allowing for an advantage over ones potential rivals” (First-Mover Advantage,” 2013). Doing this will allow for both advantages and also disadvantages to the business that adopts this mind set and then proceeds on that course of action. First Mover Advantages: * Ability to capture market share majority – This is important because “the market’s perception of the product or service is driven by your market share and that determines you prerequisite for growth” (“Why is Large Market Share,” 2008). * Ability to become the low cost leader – Doing this means the firm can minimize your cost to pass the savings on to the customers. This builds customer loyalty to you brand or service. * Create and protect intellectual property – The creation and protection of intellectual property allows the firm to be set apart from your competition. This makes your brand unique from anyone else in the market. * Ability to set the standard of rules for the market – This will allow the firm the ability to set how the game is played...
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...settings, using the simulations to examine counterfactuals involving different mixes of firms according to pricing strategies. JEL Codes: L11, C73, D21, L81 Contact Information: Ellison: Department of Economics, M.I.T., 50 Memorial Drive, Cambridge, MA 02142; tel. (617) 253-3821; fax. (617) 253-1330; email sellison@mit.edu. Snyder: Department of Economics, Dartmouth College, 301 Rockefeller Hall, Hanover, NH 03755; tel. (603) 646-0642, fax. (603) 646-2122, email chris.snyder@dartmouth.edu. Acknowledgments: The authors are grateful to Hongkai Zhang for superb research assistance and to Glenn Ellison for a number of useful conversations. 1. Introduction There is a vast and rich theoretical literature on the dynamics of repeated games. One conclusion of this literature is that many different market outcomes are possible. Full collusion, collusion on a focal price, cyclical markup patterns, and prices exactly tracking costs, are among the possibilities. This lack of a clear theoretical prediction suggests an important role for empirical...
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...ECONOMETRICS J. Appl. Econ. 23: 925– 948 (2008) Published online 7 November 2008 in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/jae.1036 ECONOMETRICS OF AUCTIONS BY LEAST SQUARES LEONARDO REZENDE* PUC-Rio, Rio de Janeiro, Brazil; and University of Illinois at Urbana–Champaign, Illinois, USA SUMMARY I investigate using the method of ordinary least squares (OLS) on auction data. I find that for parameterizations of the valuation distribution that are common in empirical practice, an adaptation of OLS provides unbiased estimators of structural parameters. Under symmetric independent private values, adapted OLS is a specialization of the method of moments strategy of Laffont, Ossard and Vuong (1995). In contrast to their estimator, here simulation is not required, leading to a computationally simpler procedure. The paper also discusses using estimation results for inference on the shape of the valuation distribution, and applicability outside the symmetric independent private values framework. Copyright 2008 John Wiley & Sons, Ltd. Received 15 September 2006; Revised 1 July 2008 1. INTRODUCTION The field of econometrics of auctions has been successful in providing methods for the investigation of auction data that are well grounded in economic theory and allow for inference on the structure of an auction environment. Today, a researcher has a number of alternative structural methods, especially within the independent private-values paradigm (IPVP); an excellent reference...
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...INFORMS Multiple Criteria Decision Making, Multiattribute Utility Theory: Recent Accomplishments and What Lies Ahead Author(s): Jyrki Wallenius, Peter C. Fishburn, Stanley Zionts, James S. Dyer, Ralph E. Steuer and Kalyanmoy Deb Source: Management Science, Vol. 54, No. 7 (Jul., 2008), pp. 1336-1349 Published by: INFORMS Stable URL: http://www.jstor.org/stable/20122479 Accessed: 15-10-2015 13:28 UTC Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/ info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. INFORMS is collaborating with JSTOR to digitize, preserve and extend access to Management Science. http://www.jstor.org This content downloaded from 130.243.57.230 on Thu, 15 Oct 2015 13:28:04 UTC All use subject to JSTOR Terms and Conditions SCIENCE MANAGEMENT WjEE. Vol. 54, No. 7, July 2008, 1336-1349 pp. DOI io.l287/nmsc.l070.0838 ISSN 0025-19091EISSN1526-55011081540711336@2008 INFORMS Criteria Decision Making, Multiattribute Multiple Utility Theory: Recent Accomplishments and What Lies Ahead School Helsinki Jyrki Wallenius of...
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...Law and the Internet: Trespass to Chattels Abstract: This paper focuses on the use of Trespass to Chattels Law by owners as protection against the intentional use of their systems or the resources therein by unauthorized parties. The trespass to chattels law cannot be correctly applied to internet-related property rights because this law is being incorrectly used and does not adequately address the concerns of internet property owners and the rights they seek to protect. The 19th Century trespass to chattels tort is being utilized in cyberspace to protect systems against unauthorized use in the same way it is used to protect tangible/physical property. This law was first used by internet service providers (ISPs) to fight against unsolicited bulk email or spam, which was being sent in excess over their networks and systems. However, it is becoming increasingly clear that the blanket application of this law to the internet has an adverse impact on the key function of the internet. Trespass to chattelslaw is now commonly used to fight against Robots (BOTs), which are automated programs that search the Internet. In many cases such as eBay v. Bidder’s edge, and Ticketmaster Corp. v. Tickets.com, this law was used to fight the ability of users to search the internet and of providers to present data to users. This ability to search and present data is the primary purpose of the internet, and the overbroad application of trespass to chattels law, without any form of modification...
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...people suffered from this problem because it effected negatively on them. It has stolen many important things from them such as health, family and time to study. I think that something must be done to those who overuse computers and internet. For example, they should try hard to stay less time on the internet. Also, they should join some centers that could help them to get red of this problem. II. Terms of Reference This research was written as part of the coursework for Visa 4 at Zayed University. It gives the reader information about the bad effects of overusing computers and internet. The information was obtained from books, the internet and databases. The research will show the problems that caused by overusing and internet and how it can effects negatively on health, family relation and academic study. III. Introduction Computer has become an important machines in our life. It plays a vital role in all fields of the life. When we add the internet to this small machine it becomes a big world that could attract many people to enter it and live in it. Moreover, they would become more friendly with it and spend most of their time dealing with it until they fell in a big problem which is called an internet addiction. Although some people say that using computers all time wouldn’t be harmful for them and it gives them more experience, overuse of computers has many bad effects such as...
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