Online Auctions From An Economics Aspect

Online Auctions Online auctions be 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 ar usable to most people in the world with the access to the Internet. These tail assembly be seen as intermediaries amidst buyers and sellers that be geographicly distant (Walczak, Gregg & Berrenberg, 2006). Online auctions ingest both advantages and disadvantages. slightly of the advantages be: product information digest be accessed any spot in the world; relatively lower monetary value of marketing since there is no use up to rent for a level to sell; no geographical limitations both for buyers and sellers to do run; and large number of sellers that enables buyers to make from cheaper products ascribable to the competition (Lin & Joyce, 2004). On the other hand, the disadvantages of online auctions argon: fortuity of unfair trading delinquent to limited or wrong information; impossibility for buyers to demo the physical aspects of the products being auctioned; goods supplied whitethorn be damaged; users may think that the goods being interchange are not tangible; and the security issues (Lin & Joyce, 2004). Types of Auctions There are two types of auctions, which are author auctions and rustle auctions.

Forward auctions are those auctions where goods are sold to the highest put upder, whereas move up 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 particular 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, simply those firms with forward auctions and are intermediaries for consumer-to-consumer (C2C) online auctions lead be discussed. portend 1 Classifications of...If you want to get a full essay, revisal it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.