Metrics for Managing Online Procurement Auctions

Ido Millet (), Diane H. Parente (), John L. Fizel () and Ray R. Venkataraman ()
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Ido Millet: Penn State Erie, Black School of Business, Erie, Pennsylvania 16563-1400
Diane H. Parente: Penn State Erie, Black School of Business, Erie, Pennsylvania 16563-1400
John L. Fizel: Penn State Erie, Black School of Business, Erie, Pennsylvania 16563-1400
Ray R. Venkataraman: Penn State Erie, Black School of Business, Erie, Pennsylvania 16563-1400

Interfaces, 2004, vol. 34, issue 3, 171-179

Abstract: Metrics can improve firms' ability to manage online procurement auctions. A key factor in business-to-business procurement auctions is supplier participation, which we modeled as a multistage process. We analyzed data collected from thousands of auctions conducted by a large multinational firm and found that different auction types lead to different participation and success dynamics. Typically, it is important to invite a sufficient number of suppliers and ensure that they accept the invitation and actually log into the auction. It is even more important to encourage active bidding and reduce the proportion of suppliers who log in but never bid.

Keywords: games; group decisions; bidding; auctions (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (12)

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