Jeffrey E. Teich

Emerging multiple issue e-auctions

We review the emerging field of multiple issue e-auctions and discuss their design features and performance criteria. We primarily consider B2B transactions in a reverse auction, that is, a procurement setting. In traditional auctions, the matching of buyers and sellers is typically based just on price. However, when there are quality and other differences in the merchandise and differences in the terms of the transaction, which are common in Request for Quotes, additional issues besides price should be considered. Such multiple issue, multiple unit e-auctions/negotiations, and their characteristics are the focus of our paper. We also discuss the role that OR has played and undoubtedly will play in the design and implementation of such e-auctions.

A multi-attribute e-auction mechanism for procurement: Theoretical foundations

Abstract We describe a multi-attribute e-auction mechanism, with a focus on its theoretical foundations. Our mechanism is designed for auctioning multiple units of a good, primarily in B2B transactions. It can be used in various types of forward and reverse auctions/RFQs (Request for Quote), although the emphasis in this paper is on procurement. To incorporate the auction owner’s preferences across issues/attributes in an auction/negotiation setting, we adopt a novel application of the ‘pricing out’ technique. Another key feature of our mechanism is the optimization-based ‘suggested price’ decision support component, which momentarily gives the best price acceptable to the buyer.

Borrower Decision Aid for people-to-people lending

In setting up, and bidding in online auctions, people face difficult strategic decisions. In this study, a Borrower Decision Aid is introduced, which will help formalize the decision making process of the sellers, or borrowers in this case, in one particular P2P loan auction site, Prosper.com. The vast amount of real-life bidding data available in this online auction enables us to build new kinds of tools for decision makers. The Borrower Decision Aid helps the borrower to quantify her strategic options, such as starting interest rate, and the amount of loan requested. We identify which variables concerning the borrower are related to the probability of successfully securing a loan and the final interest rate.

Effective benchmarking of innovation adoptions

Purpose – Recent rapid pace in the introduction of innovations has made adopting new technologies, such as those used for electronic procurement, a routine practice. But successful technology adoption depends on a multitude of factors, including those related to the adopter, to the technology, to the provider and the network within which they operate. Without careful consideration of these factors, effectiveness of benchmarking of technology adoptions may be remiss of predictable outcomes. The paper aims to aid in understanding when and how benchmarking applies to technology adoptions by introducing a new conceptual framework.Design/methodology/approach – The paper combines facets of established theories of innovation adoption to develop a new broad‐based framework. It then applies the framework to develop propositions on the adoption of two distinct types of e‐procurement technologies (EPT), namely electronic data interchange and online auctions.Findings – Three prominent adoption theories that explain i...

Designing Electronic Auctions: An Internet-Based Hybrid Procedure Combining Aspects of Negotiations and Auctions

We discuss design issues pertaining to multiple issue auctions in the WWW environment. Based on a critical evaluation of existing auctions, we propose NegotiAuctiontm, an algorithmic Internet-based auction procedure, which combines certain elements of negotiations and auctions. It can be used either in reverse or forward auctions. When defining a multiple issue (multiple attribute) auction, the auction owner has more control over the bidding process than is possible in traditional auctions, signaling bid requirements to the bidders individually. This will result in a preferred set of auction winners. It is believed to reduce the total transaction time and eliminate the necessity of holding subsequent negotiations with the set of winners.

Decision support for multi-unit combinatorial bundle auctions

Single item auctions are by far the most common auction format, but they are not always efficient. Combinatorial auctions are beneficial, when complementarities exist between the items to be auctioned. There are, however, several problems with the implementation of combinatorial auctions. Firstly, they are computationally challenging. Secondly, in combinatorial auctions it is difficult for bidders to know what kind of bids to place, since the winning bids complement each other. We consider a progressive electronic procurement situation with a monopsonistic buyer. We propose a decision support tool for iterative e-auctions generating suggestions for bids that would be among the current winners of the auction. We have tested the mechanism and report on the results.

A Multiple Unit Auction Algorithm: Some Theory and a Web Implementation

The paper discusses an electronic multiple unit discriminative auction and its implementation on the world wide web. The algorithm is designed to reduce the level of price discrimination and provide a useful and easy-to-use electronic auction mechanism. The decision of the bid price is suggested to the bidder, making the auction less cumbersome than traditional multiple unit auctions. We discuss the special cases of auction owner specified reservation prices for different quantity levels and bidder acceptance of partial quantities or not. Implications of the four resulting cases are explored and discussed. Images from the web-site, providing a prototype implementation of the auction algorithm, are displayed.

Multi-attribute online reverse auctions: Recent research trends

This paper provides an updated overview of the rapidly developing research field of multi-attribute online reverse auctions. Our focus is on academic research, although we briefly comment on the state-of-the-art in practice. The role that Operational Research plays in such auctions is highlighted. We review decision- and game-theoretic research, experimental studies, information disclosure policies, and research on integrating and comparing negotiations and auctions. We conclude by discussing implementation issues regarding online procurement auctions in practice.

Identifying Pareto-optimal settlements for two-party resource allocation negotiations

Abstract We explore models to identify Pareto-optimal outcomes in two-party multiple program resource allocation post-settlement settlement negotiations. The approximation of the contract curve, that is the set of Pareto-optimal outcomes, is also discussed. We consider the case where the parties split a shared hard resource. An application of the models to a resource allocation problem in a Finnish university is also discussed.

Success drivers of online equity crowdfunding campaigns

While equity crowdfunding provides ventures with an opportunity to collect funding from a large base of investors, many campaigns tend to remain unsuccessful. We draw from two fields of financing adjacent to equity crowdfunding, venture capital (VC) and angel investing, as well as rewards-based crowdfunding, to develop an understanding of the drivers of investment decisions in equity crowdfunding. Using data from a leading equity crowdfunding platform in Northern Europe, we explore factors that drive the number of investors and amount of funding attracted by equity crowdfunding campaigns. The results suggest that the investment decision criteria traditionally used by VCs or business angels are not of prime importance for success in equity crowdfunding. Instead, success is related to pre-selected crowdfunding campaign characteristics and the utilization of private and public networks. The findings are relevant for the decision making of entrepreneurs and crowdfunding platforms, as both parties benefit from campaign success. Many crowdfunding campaigns tend to remain unsuccessful.We develop an understanding of the success drivers underlying equity crowdfunding campaigns.We find that the criteria used by VCs or business angels are not of prime importance for success in equity crowdfunding.Success is instead related to pre-selected crowdfunding campaign features and the utilization of private and public networks.The findings can support the decision making of entrepreneurs and crowdfunding platforms, as both aim for campaign success.