Business-to-Business - online negotiations ...

... stand for an independent support regarding all aspects with online calls for bids and auctions.

Online calls for bids and (inverse) auctions are efficient means of up-to-date e-sourcing. Compared to traditional shopping these means are of advantage regarding efficiency and generated prices. In this context the design of online calls for bids or auctions, respectively, is of crucial importance; i.e. the general rules for pricings, transparency, etc..
Many auction-, and call for bids-designs partially show substantial faults. There is an especial need for action in the field of professional and independent training. Effects, like for instance the “winner’s curse”, undermine the trust in market mechanisms and counteract towards a long-term acceptance of the market. A good example for a spectacular fault was the costs explosion with the German Universal Mobile Telecommunication System’s (UMTS) licenses auction in 2000, which led to severe problems of service providers for mobiles.

The fundamental factors of success for designing efficient and effective e-sourcing instruments are given below:

  • Transparent pricing models, characterized by fairness, traceability, and incentive compatibility
  • Optimal design in auctions and calls for bids, oriented towards and aligned with the particular objective
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