An empirical study on the impact of new participants on final price savings and process of electronic reverse auctions

Abstract

The electronic reverse auction as a popular procurement mechanism, whose use can secure higher objectiveness of prices or utility of products and services across different industries, is the subject of research already for several years, however, the range of empirical studies is still lagging behind. The current paper extends the empirical findings on the subject of the electronic reverse auction. The aim of our study is to examine the impact of including new participants in the auction process. The study is based on the database of 4,442 real auction data cases of various companies including both public and private entities and different types of auction collected by the most significant reverse auction solution provider in central Europe. The research results confirmed the impact of new participants in the electronic reverse auction. According to our analysis, we have identified that there is a positive effect of new participants on final price savings.