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Pricing In Online Auction Procurement A Review Of Empirical Methods And Current Understandings

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  • MING ZHOU

    (Department of Organizations and Management, Lucas Graduate School of Business, College of Business, San José State University, BT 659, One Washington Square, San José, CA, 95192 – 0070, USA)

  • WILLIAM Y. JIANG

    (Department of Organizations and Management, Lucas Graduate School of Business, College of Business, San José State University, One Washington Square, San José, CA, 95192 – 0070, USA)

  • MENGLIN CAO

    (Credit Risk Management, Wells Fargo Bank, 525 Market Street, 23rd Floor, San Francisco, CA, 94105, USA)

Abstract

The online auction has become an important channel for procurement and sourcing management. As firms often expect lower procurement prices through online auctions, how the prices are determined in online auctions should be of major interest to procurement managers and supply chain researchers. Despite the abundant empirical studies on online auction prices, an aggregated view is still absent. This study fills this gap with a review of extant studies. More specifically, this study provides summaries of all major theories behind online auction pricing, defines and analyzes often encountered econometric issues, and discusses how the treatments of these issues have been operationalized. Towards the end, existing findings on determinants of online auction prices are integrated and examined. The purpose of this study is to provide a convenient and precise package of current studies for researchers and professionals.

Suggested Citation

  • Ming Zhou & William Y. Jiang & Menglin Cao, 2012. "Pricing In Online Auction Procurement A Review Of Empirical Methods And Current Understandings," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-17.
    • Handle: RePEc:wsi:ijitmx:v:09:y:2012:i:03:n:s0219877012500174
    DOI: 10.1142/S0219877012500174
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    References listed on IDEAS

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    1. David Lucking‐Reiley & Doug Bryan & Naghi Prasad & Daniel Reeves, 2007. "Pennies From Ebay: The Determinants Of Price In Online Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 55(2), pages 223-233, June.
    2. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521536721.
    3. Katkar Rama & Reiley David H, 2007. "Public versus Secret Reserve Prices in eBay Auctions: Results from a Pokémon Field Experiment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-25, January.
    4. Rama Katkar & David Lucking-Reiley, 2000. "Public Versus Secret Reserve Prices in eBay Auctions: Results of Pok�mon Field Experiment," Vanderbilt University Department of Economics Working Papers 0026, Vanderbilt University Department of Economics.
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