Online Auction
Chapter 1 – INTRODUCTION
1.1 Background of the Study
Internet auctions appeared on the scene in the mid 1990s, and quickly became one of the most successful applications of electronic commerce. EBay, the premier consumer-to-consumer (C2C) Internet auction site, is generally held up as an exemplar for the industry. However, it is widely predicted that the potential transaction volume in business-to-business (B2B) auctions will be much greater than in the C2C channel (Keenan, 2000; Rosenthal, 2002).
In the B2B marketplace, auctions were initially pressed into service as tools to dispense with excess inventory. The current wave of B2B integration represents a much deeper integration of auction technology into the daily operations of many businesses. In particular, companies are using auctions in many procurement situations in an effort to extract better prices from their suppliers.
Auction systems are a major component of the electronic marketplace that allow users at any site to sell and buy products. The sellers set up auctions for their products while the purchaser who bids the highest amount wins the right to purchase the product in an auction.
Auction systems have three distinct sets of users: the bidders, the auction initiator, and the auction system administrator. Each class of users requires different core and complementary features of an auction system. Note that we do not treat sellers and buyers separately; in the general case they are both bidders and have the same needs. On most consumer-to-consumer sites, the seller is the auction initiator, and places his one and only bid, to establish the reserve price, during the creation of the auction, if at all. The auction system administrator is the person (or group of people) who installs, configures, and maintains the auction site.
1.2 Statement of the Problem The problem with public auction is that the participation of the general public is very limited. The proponents design this system in
1.1 Background of the Study
Internet auctions appeared on the scene in the mid 1990s, and quickly became one of the most successful applications of electronic commerce. EBay, the premier consumer-to-consumer (C2C) Internet auction site, is generally held up as an exemplar for the industry. However, it is widely predicted that the potential transaction volume in business-to-business (B2B) auctions will be much greater than in the C2C channel (Keenan, 2000; Rosenthal, 2002).
In the B2B marketplace, auctions were initially pressed into service as tools to dispense with excess inventory. The current wave of B2B integration represents a much deeper integration of auction technology into the daily operations of many businesses. In particular, companies are using auctions in many procurement situations in an effort to extract better prices from their suppliers.
Auction systems are a major component of the electronic marketplace that allow users at any site to sell and buy products. The sellers set up auctions for their products while the purchaser who bids the highest amount wins the right to purchase the product in an auction.
Auction systems have three distinct sets of users: the bidders, the auction initiator, and the auction system administrator. Each class of users requires different core and complementary features of an auction system. Note that we do not treat sellers and buyers separately; in the general case they are both bidders and have the same needs. On most consumer-to-consumer sites, the seller is the auction initiator, and places his one and only bid, to establish the reserve price, during the creation of the auction, if at all. The auction system administrator is the person (or group of people) who installs, configures, and maintains the auction site.
1.2 Statement of the Problem The problem with public auction is that the participation of the general public is very limited. The proponents design this system in