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Managing Online Auctions: Current Business and Research Issues

  • Edieal J. Pinker


    (W. E. Simon Graduate School of Business Administration, University of Rochester, Rochester, New York 14627)

  • Abraham Seidmann


    (W. E. Simon Graduate School of Business Administration, University of Rochester, Rochester, New York 14627)

  • Yaniv Vakrat


    (McKinsey and Company, Palo Alto, California 94304 and The Graduate School of Business, Stanford University, Stanford, California 94305)

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    The Internet's computational power and flexibility have made auctions a widespread and integral part of both consumer and business markets. Though online auctions are a multi-billion dollar annual activity, with a growing variety of sophisticated trading mechanisms, scientific research on them is at an early stage. This paper analyzes the current state of management science research on online auctions. It develops a broad research agenda for issues such as the behavior of online auction participants, the optimal design of online auctions, the integration of auctions into the ongoing operation of firms, and the use of the data generated by online auctions to inform future trading mechanisms. These research areas will draw from applied and theoretical work spanning management science, economics, and information systems.

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    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 49 (2003)
    Issue (Month): 11 (November)
    Pages: 1457-1484

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    Handle: RePEc:inm:ormnsc:v:49:y:2003:i:11:p:1457-1484
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    16. Damian R. Beil & Lawrence M. Wein, 2003. "An Inverse-Optimization-Based Auction Mechanism to Support a Multiattribute RFQ Process," Management Science, INFORMS, vol. 49(11), pages 1529-1545, November.
    17. Patrick Bajari & Ali Hortacsu, 2000. "Winner's Curse, Reserve Prices and Endogenous Entry: Empirical Insights from eBay Auctions," Econometric Society World Congress 2000 Contributed Papers 1927, Econometric Society.
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