Abstract
The volume of trading carried out through auctions has increased over the last few years as information technology has spread ever further and data transmission connections have improved. An auction is a tool used to determine the exchange ratio, that is the price to be paid for goods, services or rights. The auction system is an alternative to the so-called ‘take it or leave it’ offer in a normal sales situation in which the seller sets a posted price and buyers decide whether to accept or reject the deal each time.
Highlights
The volume of trading carried out through auctions has increased over the last few years as information technology has spread ever further and data transmission connections have improved
An auction is a tool used to determine the exchange ratio, that is the price to be paid for goods, services or rights
The role of an auction is either to allocate or distribute something, depending on the object: an auction could involve several suppliers in the buying of goods or airlines bidding for landing time slot availability at airports
Summary
The volume of trading carried out through auctions has increased over the last few years as information technology has spread ever further and data transmission connections have improved. ‘In today’s international dominance of over-supply, ‘hyper-competition’ strategies are based on new paradigms, in that highly profitable businesses are only those that are able to shape an offering innovatively and create consumption ‘bubbles’ These businesses manage to satisfy the ‘bubble’ before the competition does (time-to-market) and abandon them at the right time (time competition)’. The immediate effects of the adoption of more evolved price determination systems are, for example, price customisation, in which each customer pays a different price depending on the competitive conditions (in relation to both supply and demand) at the time the deal takes place and a broadening of the competitive space with Internet as the dominant market
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