Coordination of purchasing and bidding activities across posted offer and auction markets

Dajun Zeng, James C. Cox, Moshe Dror

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

In both consumer purchasing and industrial procurement, combinatorial interdependencies among the items to be purchased are commonplace. E-commerce compounds the problem by providing more opportunities for switching suppliers at low costs, but also potentially eases the problem by enabling automated market decision-making systems, commonly referred to as trading agents, to make purchasing decisions in an integrated manner across markets. We are investigating a new approach to deal with the combinatorial interdependency challenges for online markets. This approach relies on existing commercial online market institutions such as posted-offer markets and various online auctions that sell single items. It uses trading agents to coordinate a buyer's purchasing and bidding activities across multiple online markets simultaneously to achieve the best overall procurement effectiveness. This paper presents two sets of models related to this approach. The first set of models formalizes optimal purchasing decisions across posted-offer markets with fixed transaction costs. The second set of models is concerned with the coordination of bidding activities across multiple online auctions.

Original languageEnglish (US)
Pages (from-to)25-46
Number of pages22
JournalInformation Systems and e-Business Management
Volume5
Issue number1
DOIs
StatePublished - Jan 2007

Fingerprint

Purchasing
Electronic commerce
Costs
Decision making
Bidding
Posted offer
Auction market
Online markets
Interdependencies
Online auctions
Trading agents
Procurement

Keywords

  • Equilibrium bidding
  • Fixed transaction costs
  • Multiple markets
  • Online auctions

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Coordination of purchasing and bidding activities across posted offer and auction markets. / Zeng, Dajun; Cox, James C.; Dror, Moshe.

In: Information Systems and e-Business Management, Vol. 5, No. 1, 01.2007, p. 25-46.

Research output: Contribution to journalArticle

@article{f720bf7af77042748e82c742390bca1e,
title = "Coordination of purchasing and bidding activities across posted offer and auction markets",
abstract = "In both consumer purchasing and industrial procurement, combinatorial interdependencies among the items to be purchased are commonplace. E-commerce compounds the problem by providing more opportunities for switching suppliers at low costs, but also potentially eases the problem by enabling automated market decision-making systems, commonly referred to as trading agents, to make purchasing decisions in an integrated manner across markets. We are investigating a new approach to deal with the combinatorial interdependency challenges for online markets. This approach relies on existing commercial online market institutions such as posted-offer markets and various online auctions that sell single items. It uses trading agents to coordinate a buyer's purchasing and bidding activities across multiple online markets simultaneously to achieve the best overall procurement effectiveness. This paper presents two sets of models related to this approach. The first set of models formalizes optimal purchasing decisions across posted-offer markets with fixed transaction costs. The second set of models is concerned with the coordination of bidding activities across multiple online auctions.",
keywords = "Equilibrium bidding, Fixed transaction costs, Multiple markets, Online auctions",
author = "Dajun Zeng and Cox, {James C.} and Moshe Dror",
year = "2007",
month = "1",
doi = "10.1007/s10257-006-0037-6",
language = "English (US)",
volume = "5",
pages = "25--46",
journal = "Information Systems and e-Business Management",
issn = "1617-9846",
publisher = "Springer Verlag",
number = "1",

}

TY - JOUR

T1 - Coordination of purchasing and bidding activities across posted offer and auction markets

AU - Zeng, Dajun

AU - Cox, James C.

AU - Dror, Moshe

PY - 2007/1

Y1 - 2007/1

N2 - In both consumer purchasing and industrial procurement, combinatorial interdependencies among the items to be purchased are commonplace. E-commerce compounds the problem by providing more opportunities for switching suppliers at low costs, but also potentially eases the problem by enabling automated market decision-making systems, commonly referred to as trading agents, to make purchasing decisions in an integrated manner across markets. We are investigating a new approach to deal with the combinatorial interdependency challenges for online markets. This approach relies on existing commercial online market institutions such as posted-offer markets and various online auctions that sell single items. It uses trading agents to coordinate a buyer's purchasing and bidding activities across multiple online markets simultaneously to achieve the best overall procurement effectiveness. This paper presents two sets of models related to this approach. The first set of models formalizes optimal purchasing decisions across posted-offer markets with fixed transaction costs. The second set of models is concerned with the coordination of bidding activities across multiple online auctions.

AB - In both consumer purchasing and industrial procurement, combinatorial interdependencies among the items to be purchased are commonplace. E-commerce compounds the problem by providing more opportunities for switching suppliers at low costs, but also potentially eases the problem by enabling automated market decision-making systems, commonly referred to as trading agents, to make purchasing decisions in an integrated manner across markets. We are investigating a new approach to deal with the combinatorial interdependency challenges for online markets. This approach relies on existing commercial online market institutions such as posted-offer markets and various online auctions that sell single items. It uses trading agents to coordinate a buyer's purchasing and bidding activities across multiple online markets simultaneously to achieve the best overall procurement effectiveness. This paper presents two sets of models related to this approach. The first set of models formalizes optimal purchasing decisions across posted-offer markets with fixed transaction costs. The second set of models is concerned with the coordination of bidding activities across multiple online auctions.

KW - Equilibrium bidding

KW - Fixed transaction costs

KW - Multiple markets

KW - Online auctions

UR - http://www.scopus.com/inward/record.url?scp=37849188948&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=37849188948&partnerID=8YFLogxK

U2 - 10.1007/s10257-006-0037-6

DO - 10.1007/s10257-006-0037-6

M3 - Article

VL - 5

SP - 25

EP - 46

JO - Information Systems and e-Business Management

JF - Information Systems and e-Business Management

SN - 1617-9846

IS - 1

ER -