Online Auctions From An Economics Aspect

Online Auctions Online auctions atomic number 18 networked communities of buyers and sellers who exchange growth information, coordinate and transact (Pavlou & Gefen, 2002, cited in Meents, Yao & Verhagen, 2004). Most of the time, online auctions argon in stock(predicate) to most people in the world with the access to the Internet. These peck be seen as intermediaries amidst buyers and sellers that ar geographicly distant (Walczak, Gregg & Berrenberg, 2006). Online auctions consider both advantages and disadvantages. slightly of the advantages ar: product information raise be accessed any daub in the world; comparatively lower cost of trade since there is no neediness to rent for a stead to sell; no geographical limitations both for buyers and sellers to do legal action; and large number of sellers that enables buyers to pull ahead from cheaper products ascribable to the competition (Lin & Joyce, 2004). On the other hand, the disadvantages of online auctions are: possible action of unfair trading collectible to limited or wrong information; impossibility for buyers to found the physical aspects of the products being auctioned; goods supplied whitethorn be damaged; users whitethorn think that the goods being interchange are not factual; and the security issues (Lin & Joyce, 2004). Types of Auctions There are two types of auctions, which are origin auctions and rustle auctions.

Forward auctions are those auctions where goods are sold to the highest complotder, whereas atavism 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 capital 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, single those firms with forward auctions and are intermediaries for consumer-to-consumer (C2C) online auctions forget be discussed. portend 1 Classifications of...If you want to get a full essay, revisal it on our website: Ordercustompaper.com

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