Types of online auctions
There are a number of online auctions available for use however, six will be discussed. First on the list is the Chinese auction. Other names known for the auction are "Tricky Tray" and "Pick-A-Price." During this auction bidders purchase tickets. After final bid the party with the most tickets is the winner. This auction is usually held at fund raising or charity events.
Outcry auction also known as English auction is the most common auction. Prior to bidding a reserved price is set. During the auction each bidder raise the price in a ascending manner until there is one bidder remaining or time runs out. The remaining bidder or person with the highest bid is awarded the item. However, if reserved price is not met the owner of the item has the right to decline the offer. A Dutch auction is very similar to a english auction wIth the exception of price. Instead of price increasing price descends.
During Sealed-bid first price auction all parties bid simultaneously. Once the competitor have made their Bid on the good other parties involved can rapidly decide on whether or not to keep bidding. The party with the highest bid wins. Sealed-bid second price auction also known as Victory auction is similar to bid first price. The only difference between the two is the winner doesn’t pay the highest price instead bidder pays the second highest price. All-pay auction requires bidders to pay the set amount regardless if party won or not.
Beyond the many different types of online auctions in use today, you can also take into account a vast array of different bidding types available to users ranging from penny by penny bids to cash-back bids.
Bidding types include:
• Penny Auction – A very common bidding type made popular by sites such as Quidbids and Beezid. In this bidding type users buy a package with a preset number of bids. The user can then use these bids to raise the price of an auction penny by penny. Typically each bid will reset the timer on the auction. The auction will then expire when no more bids are place and the timer reaches zero.
• Beginner – When a beginner bidding option is offered, new users can enjoy lower bids at a lower account amount. Typically these offers will last for only a set period of time and sometimes expire after the first auction is won by the user.
• Peak Auction – In a peak auction, bidding is only allowed during hours predetermined by an administrator most often during the peak times of online traffic.
• Cash back bidding – In Cash back bidding the winner of the auction will get back 100% of the money he/she has used to place their bids. The second bidder then gets back 50%, while the third receives 25% cash back.
• Seat Auction Bidding – In seat auction bidding, a user pays for a “seat” in the auction rather than a package of bids. After purchasing a seat for a predetermined amount set by an administrator, once bidding opens a user will be allowed to make unlimited bids at no further charge until the auction closes.
• Scratch Bidding – In scratch bidding users do not make bids but rather “scratch” at the set price to reduce it by certain increments. The auction will not display the ending time and the last person to have scratched by the end of the auction will be set as the winner.
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How can these different bidding techniques be aided/ improved by information systems?
ReplyDeleteI would also like to know how information systems improve the bidding process. In addition, maybe you guys could explore how information systems and other online tools have revolutionized the way people trade securities such as bonds and equity.
ReplyDeleteThe simplest response to this of course is that information systems that use the the internet obviously massively increase the market reach of various objects. Thus, there are now people who run home businesses selling products on eBay via auction.
ReplyDeleteThe same is true of services via sites like Odesk and Freelancer.
Before reading your blog, I was positive that I had never visited an online auction before. However this blog has shown me that I have taken part in, witnessed, and businesses have tried to get me to participate in online auctions; it surprises me how common hey actually are!
ReplyDeleteDo these bidding sites have to accept the highest bid or do they have the option to repost it and try to get more money for the product?
ReplyDeleteI am pretty sure they have to accept the person who wins bid.
Deleteout of all bidding sites, which is bidding sites can be trusted? where bidding here will be a competition between bidder? the opposition might look for your home and stole what they wanted.
ReplyDeleteI am also interested in what sites are legit. Some of them seem really sketchy.
DeleteFor these bidding site do you have to be registered to bid and is there a fee? Do you have to sign like a contract or renew your bidding license every year? Also I've heard that most of these bid sites you actually lose money because it is so hard to win the bids and by the time you do win the packages you buy or the amount of times you've bided is just ridiculous and not worth it. Do you know how effective they are and the rate at which people actually win bids that they bid on? And if you have to be members or sign up to bid on sites?
ReplyDeleteI'm not sure if this is true or not, but I've heard that penny auctions may not always be the best route to go because you don't actually win the item you just gain the right to buy it at a super discounted price. It's not uncommon that some people actually end up spending much more than they would just buying it at full price!
ReplyDelete