Sotheby’s and eBay
Maastricht University| | | |
School of Business & Economics| | | |
Place & date:| Maastricht, 08.12.2012| | | |
Name, initials:| Guillaume Piront GPJP| | For assessor only| | ID number:| I6050683| | 1. Content| |
Study:| International Business| | 2. Language structure| | Course code:| EBC1009| | 3. Language accuracy| |
Group number:| IB A/18| | 4. Language: Format & citing/referencing| | Tutor name:| Johnson, MMAJ (Michele)| | Overall:| |
Writing tutor name:| Menzies, LA (Lesley-Ann)| | Advisory grade| | Writing assignment:| Main Paper.| | Assessor’s initials| |
Email address: firstname.lastname@example.org
3. What is an internet auction?
4. What is eBay and how does it work?
5. What is Sotheby’s and how does it work?
6. The Game Theory (Sotheby’s and eBay)
Nowadays, it is very easy for anyone who owns a computer to acquire a product by bidding for it. Internet auctions are more and more popular for practical and authentic reasons. The fast growth of the internet sector has led to fundamental changes in our day-to-day life; and so due to its flexibility and attraction, numerous markets have been able to adapt to it. Consequently, more and more are virtually taking place. Internet dealings by way of auction now occupy the major share of this market. Worldwide markets, such as auction markets, which are still undergoing growth, have developed into a new auction form. Furthermore, we know that many famous online auction market websites, such as eBay, work very well and have encountered great success in this domain. How eBay is succeeding on the market? What can we infer from the other online auction markets? Samuel Baker created Sotheby’s 268 years ago and today is one of the most famous luxury items auction markets. Compared to eBay, the products and the set-up of this market are completely different. What are these differences? What are the target markets and how has the economy been changed (in a positive way) for 268 years?
This paper analyses some information such as the description of online auction, the different kind of bidding system, participants and goals of each auctions. This paper will equally provide some information about “Sotheby’s” and “eBay” auctions to the reader and compare one to the other, before linking the Game Theory Model to these online trading systems. Hereunder are several definitions about the unusual terms that I will imply in this paper.
The Game Theory: in any kind of game, there are always three basic elements in it. These are: the players, the list of strategies from which they can choose, and the payoffs to each combination of strategies. In some games, when a player yields a higher payoff regardless of the strategies deployed, we say that he has a dominant strategy. (Moore McDowell, 2012) Nash equilibrium: is “when each player’s strategy is his or her best choice, given the other players’ strategies” (Moore McDowell, 2012, p.263) Prisoner’s dilemma: The prisoner’s dilemma is a game, which involves players who have a dominant strategy. When these players "play" this strategy, the resulting payoffs are smaller for each one than if he or she had played a dominated strategy. (Moore McDowell, 2012)
3. What is an Internet auction?
The auction market is a bidding and buying process, which works virtually through the internet. The main principle of an internet auction is not so different from a non-virtual auction. Effectively, it consists of products that are sold over the net. In each transaction, there is a seller and a buyer just as at a normal auction. The seller sets his price for the product and will offer the buyer/s the opportunity to...