IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v21y2010i4p688-699.html
   My bibliography  Save this article

Research Commentary ---Designing Smart Markets

Author

Listed:
  • Martin Bichler

    (Department of Informatics, Technische Universität München, 85748 Garching/Munich, Germany)

  • Alok Gupta

    (Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

  • Wolfgang Ketter

    (Department of Decision and Information Sciences, Rotterdam School of Management, Erasmus University, 3000 DR Rotterdam, The Netherlands)

Abstract

Electronic markets have been a core topic of information systems (IS) research for last three decades. We focus on a more recent phenomenon: smart markets. This phenomenon is starting to draw considerable interdisciplinary attention from the researchers in computer science, operations research, and economics communities. The objective of this commentary is to identify and outline fruitful research areas where IS researchers can provide valuable contributions. The idea of smart markets revolves around using theoretically supported computational tools to both understand the characteristics of complex trading environments and multiechelon markets and help human decision makers make real-time decisions in these complex environments. We outline the research opportunities for complex trading environments primarily from the perspective of design of computational tools to analyze individual market organization and provide decision support in these complex environments. In addition, we present broad research opportunities that computational platforms can provide, including implications for policy and regulatory research.

Suggested Citation

  • Martin Bichler & Alok Gupta & Wolfgang Ketter, 2010. "Research Commentary ---Designing Smart Markets," Information Systems Research, INFORMS, vol. 21(4), pages 688-699, December.
    • Handle: RePEc:inm:orisre:v:21:y:2010:i:4:p:688-699
    DOI: 10.1287/isre.1100.0316
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.1100.0316
    Download Restriction: no
    File URL: https://libkey.io/10.1287/isre.1100.0316?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Horst Hanusch & Andreas Pyka, 2007. "Principles of Neo-Schumpeterian Economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 31(2), pages 275-289, March.
    2. Gediminas Adomavicius & Alok Gupta, 2005. "Toward Comprehensive Real-Time Bidder Support in Iterative Combinatorial Auctions," Information Systems Research, INFORMS, vol. 16(2), pages 169-185, June.
    3. Gediminas Adomavicius & Alok Gupta & Dmitry Zhdanov, 2009. "Designing Intelligent Software Agents for Auctions with Limited Information Feedback," Information Systems Research, INFORMS, vol. 20(4), pages 507-526, December.
    4. Ketter, W. & Collins, J. & Block, C., 2010. "Smart Grid Economics: Policy Guidance through Competitive Simulation," ERIM Report Series Research in Management ERS-2010-043-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Ajit Kambil & Eric van Heck, 1998. "Reengineering the Dutch Flower Auctions: A Framework for Analyzing Exchange Organizations," Information Systems Research, INFORMS, vol. 9(1), pages 1-19, March.
    6. Ravi Bapna & Paulo Goes & Alok Gupta, 2003. "Replicating Online Yankee Auctions to Analyze Auctioneers' and Bidders' Strategies," Information Systems Research, INFORMS, vol. 14(3), pages 244-268, September.
    7. Shiv, Baba & Fedorikhin, Alexander, 1999. "Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(3), pages 278-292, December.
    8. Martin Bichler & Pasha Shabalin & Alexander Pikovsky, 2009. "A Computational Analysis of Linear Price Iterative Combinatorial Auction Formats," Information Systems Research, INFORMS, vol. 20(1), pages 33-59, March.
    9. Ravi Bapna & Paulo Goes & Alok Gupta & Gilbert Karuga, 2008. "Predicting Bidders' Willingness to Pay in Online Multiunit Ascending Auctions: Analytical and Empirical Insights," INFORMS Journal on Computing, INFORMS, vol. 20(3), pages 345-355, August.
    10. Goossens, D.R. & Maas, A.J.T. & Spieksma, F.C.R. & van de Klundert, J.J., 2007. "Exact algorithms for procurement problems under a total quantity discount structure," European Journal of Operational Research, Elsevier, vol. 178(2), pages 603-626, April.
    11. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    12. Jérémie Gallien & Lawrence M. Wein, 2005. "A Smart Market for Industrial Procurement with Capacity Constraints," Management Science, INFORMS, vol. 51(1), pages 76-91, January.
    13. Bichler, Martin & Kalagnanam, Jayant, 2005. "Configurable offers and winner determination in multi-attribute auctions," European Journal of Operational Research, Elsevier, vol. 160(2), pages 380-394, January.
    14. Amy Greenwald & Karthik Kannan & Ramayya Krishnan, 2010. "On Evaluating Information Revelation Policies in Procurement Auctions: A Markov Decision Process Approach," Information Systems Research, INFORMS, vol. 21(1), pages 15-36, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhiling Guo & Gary J. Koehler & Andrew B. Whinston, 2012. "A Computational Analysis of Bundle Trading Markets Design for Distributed Resource Allocation," Information Systems Research, INFORMS, vol. 23(3-part-1), pages 823-843, September.
    2. Andor Goetzendorff & Martin Bichler & Pasha Shabalin & Robert W. Day, 2015. "Compact Bid Languages and Core Pricing in Large Multi-item Auctions," Management Science, INFORMS, vol. 61(7), pages 1684-1703, July.
    3. Yixin Lu & Alok Gupta & Wolfgang Ketter & Eric van Heck, 2019. "Dynamic Decision Making in Sequential Business-to-Business Auctions: A Structural Econometric Approach," Management Science, INFORMS, vol. 65(8), pages 3853-3876, August.
    4. Ketter, W., 2014. "Envisioning and Enabling Sustainable Smart Markets," ERIM Inaugural Address Series Research in Management EIA-2014-057-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam..
    5. Martin Bichler & Pasha Shabalin & Georg Ziegler, 2013. "Efficiency with Linear Prices? A Game-Theoretical and Computational Analysis of the Combinatorial Clock Auction," Information Systems Research, INFORMS, vol. 24(2), pages 394-417, June.
    6. Gediminas Adomavicius & Shawn P. Curley & Alok Gupta & Pallab Sanyal, 2012. "Effect of Information Feedback on Bidder Behavior in Continuous Combinatorial Auctions," Management Science, INFORMS, vol. 58(4), pages 811-830, April.
    7. Pham, Long & Teich, Jeffrey & Wallenius, Hannele & Wallenius, Jyrki, 2015. "Multi-attribute online reverse auctions: Recent research trends," European Journal of Operational Research, Elsevier, vol. 242(1), pages 1-9.
    8. Karthik N. Kannan, 2012. "Effects of Information Revelation Policies Under Cost Uncertainty," Information Systems Research, INFORMS, vol. 23(1), pages 75-92, March.
    9. Gediminas Adomavicius & Shawn P. Curley & Alok Gupta & Pallab Sanyal, 2020. "How Decision Complexity Affects Outcomes in Combinatorial Auctions," Production and Operations Management, Production and Operations Management Society, vol. 29(11), pages 2579-2600, November.
    10. Wolfgang Ketter & John Collins & Maria Gini & Alok Gupta & Paul Schrater, 2012. "Real-Time Tactical and Strategic Sales Management for Intelligent Agents Guided by Economic Regimes," Information Systems Research, INFORMS, vol. 23(4), pages 1263-1283, December.
    11. Pallab Sanyal, 2016. "Characteristics and Economic Consequences of Jump Bids in Combinatorial Auctions," Information Systems Research, INFORMS, vol. 27(2), pages 347-364, June.
    12. Abhishek Ray & Mario Ventresca & Karthik Kannan, 2021. "A Graph-Based Ant Algorithm for the Winner Determination Problem in Combinatorial Auctions," Information Systems Research, INFORMS, vol. 32(4), pages 1099-1114, December.
    13. De Liu & Adib Bagh, 2020. "Preserving Bidder Privacy in Assignment Auctions: Design and Measurement," Management Science, INFORMS, vol. 66(7), pages 3162-3182, July.
    14. Wedad J. Elmaghraby & Elena Katok & Natalia Santamaría, 2012. "A Laboratory Investigation of Rank Feedback in Procurement Auctions," Manufacturing & Service Operations Management, INFORMS, vol. 14(1), pages 128-144, January.
    15. Martin Bichler & Vladimir Fux & Jacob Goeree, 2018. "A Matter of Equality: Linear Pricing in Combinatorial Exchanges," Information Systems Research, INFORMS, vol. 29(4), pages 1024-1043, December.
    16. Gediminas Adomavicius & Alok Gupta & Mochen Yang, 2022. "Bidder Support in Multi-item Multi-unit Continuous Combinatorial Auctions: A Unifying Theoretical Framework," Information Systems Research, INFORMS, vol. 33(4), pages 1174-1195, December.
    17. Jingjing Zhang & Gediminas Adomavicius & Alok Gupta & Wolfgang Ketter, 2020. "Consumption and Performance: Understanding Longitudinal Dynamics of Recommender Systems via an Agent-Based Simulation Framework," Information Systems Research, INFORMS, vol. 31(1), pages 76-101, March.
    18. May Truong & Alok Gupta & Wolfgang Ketter & Eric van Heck, 2022. "Buyers’ Strategic Behavior in B2B Multichannel Auction Markets: When an Online Posted Price Channel Is Incorporated into a Dutch Auction System," Information Systems Research, INFORMS, vol. 33(4), pages 1344-1367, December.
    19. John Aloysius & Cary Deck & Amy Farmer, 2013. "Sequential Pricing of Multiple Products: Leveraging Revealed Preferences of Retail Customers Online and with Auto-ID Technologies," Information Systems Research, INFORMS, vol. 24(2), pages 372-393, June.
    20. Bichler, Martin & Schneider, Stefan & Guler, Kemal & Sayal, Mehmet, 2011. "Compact bidding languages and supplier selection for markets with economies of scale and scope," European Journal of Operational Research, Elsevier, vol. 214(1), pages 67-77, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:21:y:2010:i:4:p:688-699. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.