KAIST 2002F Auction Oct 8

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Information about KAIST 2002F Auction Oct 8

Published on November 5, 2007

Author: Herminia

Source: authorstream.com

Auctions in EC :  October 8, 2001 Jae Kyu Lee (jklee@kgsm.kaist.ac.kr) Graduate School of Management Korea Advanced Institute of Science and Technology Auctions in EC Composition of eAuction:  Composition of eAuction Auction WWW/IT Effects Competing Auctions and Trade Forms Source : Modified from Klein (1997) The Process of eAuction:  The Process of eAuction Register Motivations of eAuctions:  Motivations of eAuctions Coordinationmechanism Price Discovery Allocation mechanism Distribution mechanism Buyer Role Short-term acquisition Often experts/ Bargain hunting, Bargain hunting, Supplier Role Short-term allocation Exposing items for Clearance of inventory Attention, direct Auctioneer/ Intermediary Role Often electronic Achieve high breadth Limited role of resources, e.g., for demand peaks, auction as a mechanism to achieve an equilibrium of resources, load balance auction without auctioneer Professional collectors trying to acquire rare items at a reasonable price sale to a charity, sufficient breadth of demand, hope for a high price and depth of the auctions, high trading volume results in high returns, competitive advantage over other auctions Achieve high breadth and depth of the auctions, high trading volume results in high returns, competitive advantage over other auctions gambling motive Gambling motive, Possible side motive: charity sale channel, public relations; possible side motive: charity because of supplier-buy relation;possible function as service provider for the supplier side Source : Modified from Klein (1997) Impact of Web-based Auction:  Impact of Web-based Auction Parameter Impact of the Web Auctioneer Access Rules Item auctioned Lower entry barriers; opportunity for direct sales. Customizable; Theoretically millions of potential customers can be reached. Focused product segments can be auctioned off; the technology extend the complexity of the product description. Trading Rules The trading rules reflect the lack of a guaranteed service. Execution process For digital products the entire trading cycle can be handled on the Web; For physical products the trading process and the physical logistics of the trade objects can be separated, leading to a reduction of costs. Source : Modified from Klein (1997) Web based Auctions:  Web based Auctions Source : Eric Van Heck, and Peter Vervest, Communications of the ACM july 1998/Vol. 41, No. 7 One Many One Negotiations using EDI Forword (Sales) Auctions Seller Many Reverse (Procurement) Auctions Double Auctions Negotiations using EDI: B2B EDI Web-based (Sales) Forward Auctions : eBay, Auction.co.kr Web-based (Procurement) Reverse Auctions : Priceline.com Web-based Double Auctions : Stock Exchanges (Arizona Stock Exchange closed www.azx.com) Buyer Contrast of Traditional and Internet Auction:  Contrast of Traditional and Internet Auction Types of Auctions:  Types of Auctions Auction English Auction : Ascending Auction Yankee Auction Dutch Auction : Descending Auction Free Fall Auction Sealed Bid Auction First Price Sealed Bid Auction Second Price Sealed Bid Auction (Vickrey Auction) Double Auction (vs. Single Auction) Continuous Double Auction Many sellers and buyers bid continuosly Sealed Double Auction Many sellers and buyers bid simultaneouslly Computerized Auction Clock for Dutch Flower Auction:  Computerized Auction Clock for Dutch Flower Auction Items in Auctions:  Items in Auctions 8 Food and Beverages 4% Antiques 28% 9 Information 4% Real Estate 22% 10 Antiques 4% Money 17% Source : Carrie Beam, and Arie Segev, Fisher CMIT Working Paper, Nov. 1998 Use Level by Auction Types:  Use Level by Auction Types Source : Carrie Beam, and Arie Segev, Fisher CMIT Working Paper, Nov. 1998 Business Models of eAuctions:  Business Models of eAuctions Pure-play Internet companies Mainly for Customer-to-Customer Multitude of item; low price items Auction Ltd., (www.auction.co.kr), eSellpia (www.esellpia.co.kr) eBay (www.ebay.com), egghead and ONSALE (www.onsale.com) [closed] Vertical Auction (or Auction Vortal) Click and Mortar of traditional auctioneer Mainly Business-to-Customer Speialized items; high price items Build Community Sotheby (www.sothebys.com) : paints Butterfiled & Butterfield (www.firstauction.com) : jewelry, paints, furnitures Christie (www.christies.com) : paints, automobiles TechSmart: Specialized in used or outdated PCs in a B2B auction. Reverse Auction : Priceline.com, FastParts.com Use Level by Business Models:  Use Level by Business Models Source : Carrie Beam, and Arie Segev, Fisher CMIT Working Paper, Nov. 1998 Items Any Items: 74% Specicalty: 13% Use Agents: 7% Business Model C2C (52%) : e.g.) eBay, Auction Ltd. B2C (25%) : e.g.) Zauction, Auction Ltd. B2B (6%) : e.g.) Industrialbid, B2C & B2B (16%) eAuction Sites:  eAuction Sites Company eBay Opens Members # Items Fee Payments Delivery Cost 1995.5 37.6 M (Nov, 2001) 2000 K Sale : 1.25-5% Register : $0.2-2 Online Credit Seller Pays Onsale/Egghead End of 1995 Merged 1290 K Sale: 1.25-5% Register : $0.2-2 Online Credit Auction Ltd 1998.4 4.3 M (Nov, 2001) 100 K Sales (Free, Fee for Value Add) Online Credit Seller Pays Wa!Auction 1999.9 closed 20 K Sale: 3% Online Credit - Sellpia 1999.10.15 260M (Nov, 2001) 20 K Sales (Free, Fee for Value Add) Online Credit Seller Pays www.ebay.com www.onsale.com www.auction.co.kr ---- www.sellpia.co.kr Types Portal Vertal Portal Reverse Auction Auction Hub Stock Price 57$ Merged to eqghead $99/32 (March 2000) 15,500 Won Closed Seller Pays B2B Auctions:  B2B Auctions Independent Auctions : Company use a third-party auctioneer to create the site and sell the goods e.g. www.fairmarket.com [became a solution provider] www.imxexchange.com Commodity Auctions : Buyers and Sellers come together to a third-party Web site. Access Energy, Utilities, and Telecommunications or Dutch flower market e.g. www.band-x.com, www.metalsite.net, www.fastparts.com Private Auctions : Open the Auction Market privately e.g.Ingram(www.auctionblock.com) [is coming soon] Source : Forrest Research, Fickel (1999) Fraud Problems in Auctions:  Fraud Problems in Auctions 87% of Internet fraud accounts for eAuction. (Internet Fraud Watch fraud.org/internet/intinfo.htm) 9 out of 10 Internet-related complaints registered are concerned with auction fraud. (National Consumer League’s National Fraud Information Center) Average auction loss is US$248 per complaint. US$1.1 million was lost due to the fraudulant activities. Types of eAuction Fraud:  Types of eAuction Fraud Bid Shielding Use of some phantom bidders to bid at very high price when the auction begins. Then at the last hour, the phantom bidders pull out, and one bidder with a very low price will win. Shilling Sellers arrange to have fake bids places on their item to artificially jack up high bids on their item. Fake Photos and Misleading Descriptions Improper Grading Techniques Selling Reproduction High Shipping Costs and Handling Fees Failure to Ship Mechandise Loss and Damage Claims Switch and Return Protecting Against eAuction Fraud:  Protecting Against eAuction Fraud eBay’s measures Only 27 out of every 1,000,000 transactions at eBay were fraudulent in 2000. User Identity Verification eBay uses the services of Equifax to verify user identity for a $5 fee. Authentication Service Determine whether an item is genuine and described appropriately. Authenticator service for a fee. Grading Service Determine the physical condition of an item. Feedback Forum Allows registered buyers and sellers to comment on their experiences with other individuals. Individuals build up their online trading reputation. Protecting Against eAuction Fraud(ii):  Protecting Against eAuction Fraud(ii) Insurance Policy eBay offers insurance underwritten by Lloyd’s of London. Users are covered up to $200, with a $25 deductible, without fee. Escrow Service Procedure Buyer mails the payment to the escrow service. Alert the seller the payment. Seller ships the good to the buyer. Buyer inspect the goods, and notify the acceptance. Escrow service pays the seller. eBay recommends recommends escrow service for a fee. I-Escrow (www.escrow.ca): on-line escrow service provider Protecting Against eAuction Fraud (iii):  Protecting Against eAuction Fraud (iii) Non-payment Punishment eBay Policy 1st violation: friendly warning 2nd violation: sterner warning 3rd violation: 30-day suspension 4th violation: Indefinite suspension Appraisal Service Estimate the value of an item Hard to implement. Verification Some collectors have their item ‘DNA tagged’ for identification purposes. Auction Comparison Model :  Auction Comparison Model Auction comparison process 1. Find it 2. Track it 3. Win it eBay’s lonely crusade against the shopbots, (Businessweek Online, 02/11/2000) Biddersedge [www.bidxs.com/be] Bid Search Engine Auctionwatch.com Shifted to the Solution Provider Auction Solutions Auctionbroker.com : EasyScreen Layout view multiple auction sites Problem - Winner’s Curse eAuction for Procurement:  eAuction for Procurement Status Many Companies and Government agencies are reengineering their bidding processes and procedures NASA Canada : Governmental Procurement above $25,000 Required to use the system MERX Boeing Inc.(1997): Found on the Internet vendors that charge 10-30% less than what Boeing used to pay, and also got the job done faster GE TPN [GXS] Market Size Prospect Total amount of public purchase requests now advertised on the Internet exceeds $400 billion annually. (www.bidengine.com) Slide23:  Online Auction Sites Terms in Bidding:  Terms in Bidding Reserve Price Auction Lowest price a seller is willing to sell an item for If no bid meets the reserve price, the auction is cancelled. Bid Retraction Cancellation of a bid Usually a bid is considered as a binding contract Auto-snipping The act of entering a bid during the very last seconds of an auction and outbidding the highest bidder Auction Express offers a tool to snip items automatically Auctiontool.com [domain onsale] Proxy bidding A software system that operate as a proxy to place bids on behalf of the buyers Buyer determines the maximum bid, and then place the first bid manually. Proxy execute the bids trying to keep the bids as low as possible Post Auction Follow-ups:  Post Auction Follow-ups Notification Bidding notification to buyers: notify the status whether they are being outbid or winning in auction End-of-Auction Notices Seller Notices about auction number, item name, price, payment preference, mailing address Postcards and Thank-you Notes Feedback and Rating Invoice and Billing Payment Methods:  Payment Methods EFT PayByWeb.com, PayPal.com[acquired by eBay] BidPay.com[money order] Escrow Service The third pary holds a bidder’s payment in trust until the buyer receives and accepts the auction item from the seller. I-Escrow (escrow.ca), Auction.co.kr Credit Card Payment Person-to-person credit card transaction Billpoint.com offers escrows, shipment tracking, and fraud protection.[will phase out in 2003] CCNow.com [became a solution provider] Shipping and Postage:  Shipping and Postage Internet Shipping AuctionShip.com Internet Postage Stamp.com: Download the postage, print stampled envelopes and labels, and arrange shipment via the US Postal Service. Auctions in Private Networks:  Auctions in Private Networks Pigs in Singapore and Taiwan Cars in Japan: Aucnet Livestock in Australia Mobile Auction:  Mobile Auction Benefits Conveniece and ubiquity Privacy Simpler and faster Limitation Visual quality Memery capacity Trend of Internet Auction:  Trend of Internet Auction Auctions at Portal Secure Buyer Protection Global Reach eBay + Auction.co.kr Agent-based auction: Research Pricemix.com: Comparison Shopping Agent Agent 인터넷 경매 기술:  Agent 인터넷 경매 기술 Tete-a-Tete (ecommerce.media.mit.edu/tete-a-tete) MIT 미디어연구실에서 개발한 협상에이전트 시스템 소비자가 원하는 상품의 질이나 색상, 가격 등의 정보를 가지고 판매 에이전트들과 협상을 통해 거래를 성사 시킴 AuctionBot (auction.eecs.umich.edu) 미시간대학 인공지능 연구실에서 개발된 다목적 인터넷 경매 서버(Multipurpose Internet Auction Server) 구매자가 참여를 원하는 경매의 정보와 조건을 제시하면 그에 맞는 경매 사이트를 찾아줌 e-Mediator (ecommerce.cs.wustl.edu/emediator/ ) 구매자 에이전트가 다수의 판매자 사이트를 방문하고 정보를 모아온다. 구매자가 입찰의 상한선을 결정해 주면 그 한계 내에서 Agent 스스로 입찰에 참여한다. BidWatcher 구매자를 돕는 에이전트로서 구매자가 상품 구입의 최대 한도를 에이전트에게 알려 준다. 에이전트는 가능한 최소가격부터 최대가격을 넘지 않는 한에서 경매에 응한다. Unik-Agent EC 경매 및 입찰에서 일어나 계약의 유형, 규칙 및 Agent Message를 정의 Bazaar(MIT), Negotiation in Electronic Commerce(CITM, UC Berkeley) 등 References:  References Albert Pang, “ Internet Commerce Procurement Application Market Review, Forecast, and User Trends, 1998-2003, IDC#19662, August1999 Arie Segev and Judith Gebauer, Carrie Beam, “Procurement in the Internet Age-Current Practices and Emerging Trends (Results from field Study), Fisher CMIT Working Paper WP-98-1033, Aug. 1998 Carrie Beam and Arie Segev, “Auctions on the Internet: A Field Study,” Working Paper 98-WP-1032, Nov.1998. Efraim Turban, Jae K. Lee, David King and H. Michael Chung, “Electronic Commerce : a managerial perspective”, 1999 Efraim Turban, “Auctions and Bidding on the Internet : An Assessment”, Electronic Markets, Vol.7, No.4, 1997 Eric Van Heck and Peter Vervest, “How Should CIOs Deal with Web-Based Auctions?,” Communications of the ACM, July 1998/Vol 41. No7 Jill L. Frankle, “Online Auctions:The New E-Commerce Enabler”, IDC#18872, April 1999 John-Carol Brigham, “Indirect Procurement Over the Internet”, IDC#19143, May 1999 L. Fickel, “Online Auctions: Bid Business” CIO Web Business Magazine, June, 1999 Michael N. Huhns, Jose M. Vidal, “Online Auctions,” IEEE Internet Computing, May.June 1999. Robert H. Guttman and Pattie Maes, “Agent-mediated Integrative Negotiation for Retail Electronic Commerce,” White Paper . S. Klein, “Introduction to Electronic Auctions”, Electronic Markets 7, #4, 1997 이승현, 서의호, 윤영수, “A Web-based Auction Mechanism for Multi-Agent Environment”, 1999 이재규, 이웅규, “지능형 에이전트에 기반한 입찰,” 컴퓨터월드, 1997.7.1 이재규, 이웅규, “전자상거래와 경매시스템,” 컴퓨터월드, 1997.7.15 이재규외, “전자상거래원론”, 2002, 법영사 이준한, 문태수, “정부 조달 EDI의 확산방안에 관한 연구, 1999 전호일, 한유경,이재범, “인터넷 경매” 사례연구, 1999 References:  References Amazon : www.news.com/News/Item/0,4,0-35623,00.html Arizona Stock Exchange: www.azx.com Butterfiled & Butterfield: www.firstauction.com Christie: www.christies.com Dell: www.dell.com eBay: www.news.com/News/Item/0,4,0-35623,00.html eBay : www.ebay.com/aw eCo: www.commerce.net/projects/currentprojects/eco/ eMediator: ecommerce.cs.wustl.edu/emediator/ Sellpia : www.sellpia.co.kr Auction Ltd. : www.auction.co.kr

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