Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Online Auctions that Reveal Bids Good for Buyers, Says Study in Management Insights

11.09.2007
Online buyers are better served in markets where all bids are disclosed after the bidding, according to the Management Insights feature in the July issue of Management Science, the flagship journal of the Institute for Operations Research and the Management Sciences (INFORMS®).

Management Insights, a regular feature of the journal, is a digest of important research in business, management, operations research, and management science. It appears in every issue of the monthly journal.

“Effects of Information-Revelation Policies Under Market-Structure Uncertainty” is by Ashish Arora and Ramayya Krishnan, Carnegie Mellon University; Amy Greenwald, Brown University; and Karthik Kannan, Purdue University.

Electronic B2B marketplaces like www.ariba.com are growing in importance. In third-party electronic marketplaces, sellers face uncertainty about the number of competitors they face in each market session. Since typically the same set of sellers repeatedly compete across market sessions, sellers can alter their bids to learn about their competitors, depending on how the electronic market place is organized, and specifically, how bid information is disclosed.

The authors compare two commonly used setups—one where all bids are disclosed after the bidding round is over, and one where only the winning bid is disclosed. They show that on average the price paid by buyers is higher when only the winning bid is disclosed.

As a result, buyers are better off in markets where all bids are disclosed at the conclusion of the bidding round.

The current issue of Management Insights is available at http://mansci.journal.informs.org/cgi/reprint/53/8/v. The full papers associated with the Insights are available to Management Science subscribers. Individual papers can be purchased at http://institutions.informs.org. Additional issues of Management Insights can be accessed at http://mansci.pubs.informs.org/.

The Insights in the current issue are:

Industry Level Supplier-Driven IT Spillovers by Zhuo (June) Cheng and Barrie R. Nault
The Impact of Prior Decisions on Subsequent Valuations in a Costly Contemplation Model by Elie Ofek, Muhamet Yildiz, and Ernan Haruvy
The Price of Anarchy in Supply Chains: Quantifying the Efficiency of Price-Only Contracts by Georgia Perakis and Guillaume Roels
Risk Mitigation in Newsvendor Networks: Resource Diversification, Flexibility, Sharing, and Hedging by Jan A. Van Mieghem
Existence of Coordinating Transshipment Prices in a Two-Location Inventory Model by Xinxin Hu, Izak Duenyas, and Roman Kapuscinski
Fairness and Channel Coordination by Tony Haitao Cui, Jagmohan S. Raju, and Z. John Zhang
Learning from Experience in Software Development: A Multilevel Analysis by Wai Fong Boh, Sandra A. Slaughter, and J. Alberto Espinosa
Does Transaction Misalignment Matter for Firm Survival at All Stages of the Industry Life Cycle? by Nicholas Argyres and Lyda Bigelow
A Market-Based Optimization Algorithm for Distributed Systems by Zhiling Guo, Gary J. Koehler, and Andrew B. Whinston

INFORMS journals are strongly cited in Journal Citation Reports, an industry source. In the JCR subject category “operations research and management science,” Management Science ranked in the top 10 along with two other INFORMS journals.

The special MBA issue published by Business Week includes Management Science and two other INFORMS journals in its list of 20 top academic journals that are used to evaluate business school programs. Financial Times includes Management Science and four other INFORMS journals in its list of academic journals used to evaluate MBA programs.

About INFORMS
The Institute for Operations Research and the Management Sciences (INFORMS®) is an international scientific society with 10,000 members, including Nobel Prize laureates, dedicated to applying scientific methods to help improve decision-making, management, and operations. Members of INFORMS work in business, government, and academia. They are represented in fields as diverse as airlines, health care, law enforcement, the military, financial engineering, and telecommunications. The INFORMS website is www.informs.org. More information about operations research is at www.scienceofbetter.org.

Barry List | EurekAlert!
Further information:
http://www.scienceofbetter.org
http://www.informs.org

More articles from Studies and Analyses:

nachricht Win-win strategies for climate and food security
02.10.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht The personality factor: How to foster the sharing of research data
06.09.2017 | ZBW – Leibniz-Informationszentrum Wirtschaft

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Neutron star merger directly observed for the first time

University of Maryland researchers contribute to historic detection of gravitational waves and light created by event

On August 17, 2017, at 12:41:04 UTC, scientists made the first direct observation of a merger between two neutron stars--the dense, collapsed cores that remain...

Im Focus: Breaking: the first light from two neutron stars merging

Seven new papers describe the first-ever detection of light from a gravitational wave source. The event, caused by two neutron stars colliding and merging together, was dubbed GW170817 because it sent ripples through space-time that reached Earth on 2017 August 17. Around the world, hundreds of excited astronomers mobilized quickly and were able to observe the event using numerous telescopes, providing a wealth of new data.

Previous detections of gravitational waves have all involved the merger of two black holes, a feat that won the 2017 Nobel Prize in Physics earlier this month....

Im Focus: Smart sensors for efficient processes

Material defects in end products can quickly result in failures in many areas of industry, and have a massive impact on the safe use of their products. This is why, in the field of quality assurance, intelligent, nondestructive sensor systems play a key role. They allow testing components and parts in a rapid and cost-efficient manner without destroying the actual product or changing its surface. Experts from the Fraunhofer IZFP in Saarbrücken will be presenting two exhibits at the Blechexpo in Stuttgart from 7–10 November 2017 that allow fast, reliable, and automated characterization of materials and detection of defects (Hall 5, Booth 5306).

When quality testing uses time-consuming destructive test methods, it can result in enormous costs due to damaging or destroying the products. And given that...

Im Focus: Cold molecules on collision course

Using a new cooling technique MPQ scientists succeed at observing collisions in a dense beam of cold and slow dipolar molecules.

How do chemical reactions proceed at extremely low temperatures? The answer requires the investigation of molecular samples that are cold, dense, and slow at...

Im Focus: Shrinking the proton again!

Scientists from the Max Planck Institute of Quantum Optics, using high precision laser spectroscopy of atomic hydrogen, confirm the surprisingly small value of the proton radius determined from muonic hydrogen.

It was one of the breakthroughs of the year 2010: Laser spectroscopy of muonic hydrogen resulted in a value for the proton charge radius that was significantly...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ASEAN Member States discuss the future role of renewable energy

17.10.2017 | Event News

World Health Summit 2017: International experts set the course for the future of Global Health

10.10.2017 | Event News

Climate Engineering Conference 2017 Opens in Berlin

10.10.2017 | Event News

 
Latest News

Electrode materials from the microwave oven

19.10.2017 | Materials Sciences

New material for digital memories of the future

19.10.2017 | Materials Sciences

Physics boosts artificial intelligence methods

19.10.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>