Online Auctions From An Economics Aspect

Online Auctions Online auctions are networked communities of buyers and sellers who exchange product information, coordinate and transact (Pavlou & Gefen, 2002, cited in Meents, Yao & Verhagen, 2004). Most of the time, online auctions are available to most people in the world with the access to the Internet. These can be seen as intermediaries amidst buyers and sellers that are geographically distant (Walczak, Gregg & Berrenberg, 2006). Online auctions have both advantages and disadvantages. slightly of the advantages are: product information can be accessed any situation in the world; relatively lower make up of trade since there is no need to rent for a attitude to sell; no geographical limitations both for buyers and sellers to do put through; and large number of sellers that enables buyers to benefit from cheaper products ascribable to the competition (Lin & Joyce, 2004). On the other hand, the disadvantages of online auctions are: possibility of unfair trading cod to limited or inaccurate information; impossibility for buyers to designate the physical aspects of the products being auctioned; goods supplied whitethorn be damaged; users whitethorn think that the goods being sold are not quick; and the security issues (Lin & Joyce, 2004). Types of Auctions There are two types of auctions, which are spring auctions and rustle auctions.

Forward auctions are those auctions where goods are sold to the highest bidder, whereas snarf auctions, on the other hand, are auctions where suppliers compete on cost and the one with the lowest bid wins the business (Online auctions, 2003). Moreover, online auctions can in any! case be categorized into three essential ways, which are business-to-consumer online auctions (B2C), business-to-business online auctions (B2B), and consumer-to-consumer online auctions (C2C). For the decision of this assignment, only those firms with forward auctions and are intermediaries for consumer-to-consumer (C2C) online auctions allow be discussed. portend 1 Classifications of...If you want to get a full essay, revisal it on our website: OrderCustomPaper.com

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