Sequential Effects and Bidder Heterogeneity in B2B Auctions

Sequential Effects and Bidder Heterogeneity in B2B Auctions
Author: Alex Scott
Publisher:
Total Pages: 37
Release: 2017
Genre:
ISBN:

Heterogeneous bidding behavior by firms in business-to-business procurement auctions has recently been observed in contexts as wide-ranging as Dutch flower auctions and auctions for secondhand goods. But there has yet to be an empirical examination of what types of firms behave in which ways. We study a longitudinal dataset of spot auctions in which we observe exogenously-imposed business constraints on the bidding firms - some firms can perform work only using assets that they own and operate, while others must outsource work - i.e., brokers. These business constraints manifest themselves in strikingly different behavior by the bidding firms. Brokers bid often and with relatively high prices, while firms who operate assets bid infrequently, with low prices, and are highly affected by capacity constraints. The two types of firms have different response mechanisms in sequential auctions. Brokers adjust their prices in subsequent auctions based on whether they won or lost the previous auction, while firms who operate assets decide whether or not to place a bid. We examine other sources of heterogeneity and discuss implications for our focal industry.

Market Information and Bidder Heterogeneity in Secondary Market Online B2B Auctions

Market Information and Bidder Heterogeneity in Secondary Market Online B2B Auctions
Author: Ali Pilehvar
Publisher:
Total Pages: 0
Release: 2015
Genre:
ISBN:

Online auction environments provide several sources of information that can be used by bidders to form their bids. The impact of this information on bidding is likely to be higher when ambiguously specifi ed products are auctioned. The secondary market represents one such environment, where used and returned items from big-box retailers are auctioned off to other business buyers. Using a proprietary dataset of secondary market auctions hosted on an online B2B platform, we study how market pricing information from other auctions for comparable products a ffects the bidding behavior of the first bidder. First bidders are shown to be influenced by two sets of pricing information: prices from their own historical bidding behavior and concurrent prices, formed from other open and just-finished auctions relative to the focal auction. We also study how the impact of these market pricing information are moderated by bidder heterogeneity, captured by bidder experience and cross bidding activity on the platform across comparable concurrent auctions. Finally, we show the fi rst bid is signi cantly associated with the auction's nal price, contingent on the type of first bidder. Auctions are increasingly being used for the sale of ill-defi ned and idiosyncratic products; our work thus provides managerial implications for how auctioneers may design and manage the flow of relevant information to di erent classes of bidders on their sites in order to enhance their yields.

The Effect of Concurrent Business on Supplier Behavior in B2B Auctions

The Effect of Concurrent Business on Supplier Behavior in B2B Auctions
Author: Alex Scott
Publisher:
Total Pages:
Release: 2019
Genre:
ISBN:

Buyers often procure multiple goods and services from the same supplier. Accordingly, business exchanged in one setting may affect exchanges between the buyer and supplier other settings. We study how business procured via business-to-business (B2B) auctions is affected by business exchanged between the buyer and supplier concurrent to the auctions. Using two transactional datasets, one with auctions held by a large buyer of truckload transportation services over a four-year period and another with the buyer's transactions with suppliers over the same time period but governed by long-term contracts, we analyze whether the contractual business affects decisions made in the B2B auctions. We find that concurrent business affects the participation decisions of both parties: the buyer is more likely to invite a supplier with whom they transact more concurrent business, and the supplier is more likely to bid. Concurrent business also affects supplier decisions in the form of reference prices. When a buyer and supplier have a preexisting price for the service up for auction, the supplier sometimes uses that as their bid price, with considerable heterogeneity explained by a supplier's business model. We show that business external to an auction significantly affects buyer and supplier decisions in a B2B auction.

Handbook of Business-to-Business Marketing

Handbook of Business-to-Business Marketing
Author: Lilien, Gary L.
Publisher: Edward Elgar Publishing
Total Pages: 713
Release: 2022-07-15
Genre: Business & Economics
ISBN: 1800376871

This path-breaking Handbook is targeted primarily at marketing academics and graduate students who want a comprehensive overview of the academic state of the business-to-business marketing domain. It will also prove an invaluable resource for forward-thinking business-to-business practitioners who want to be aware of the current state of knowledge in their domains.

Understanding Willingness-to-Pay Formation of Repeat Bidders in Sequential Online Auctions

Understanding Willingness-to-Pay Formation of Repeat Bidders in Sequential Online Auctions
Author: Paulo Goes
Publisher:
Total Pages: 0
Release: 2021
Genre:
ISBN:

A growing number of vendors are using a sequence of online auctions to sell large inventories of identical items. Although bidding strategies and bidder behavior in single auctions have been extensively studied, limited research exists on bidding in sequential auctions. We seek to explain how bidders in such an environment learn from the information, and form and update their willingness to pay (WTP). Using a large data set from an online auction retailer, we analyze the evolution of the bidders' WTP as well as the effect of auction design on bidders' WTP in sequential auctions. We see our study in the context of a longitudinal field experiment, in which we were able to track actions of repeat bidders over an extended period of time. Our results show that bidders' WTP in sequential auctions can be explained from their demand characteristics, their participation experience in previous auctions, outcomes in previous auctions, and auction design parameters. We also observe, characterize, and measure what we call a modified demand reduction effect exhibited across different auctions, over time, by multiunit demand bidders. Our findings are important to enable better auction mechanism design, and more sophisticated bidding tools that explore the rich information environment of sequential auctions. Full paper available at https://doi.org/10.1287/isre.1080.0216.

Business-to-Business Marketing

Business-to-Business Marketing
Author: Ross Brennan
Publisher: SAGE Publications Limited
Total Pages: 340
Release: 2024-02-08
Genre: Business & Economics
ISBN: 1529678021

Written from a European perspective, this comprehensive and regularly updated textbook covers both the theory and practice of global business-to-business (b2b) marketing. New to this sixth edition: · Increased and updated coverage covering digital transformation and responsible business as well as new content on small firms · New organizational coverage, including companies and brands such as Airspares Unlimited, Optel Group, Pfizer, Royal FloraHolland, Toyota, Trellebord,ValCo Engineering Ltd and Volkswagen · Updated online resources for instructors to use and share in their teaching with students, including PowerPoint slides, a testbank, and an instructor’s manual containing guidance and links to online content such as video material, reports, websites and relevant journal articles for each chapter. The textbook is suitable for students taking a b2b/industrial marketing module at undergraduate or postgraduate levels. It will also be useful to researchers and practitioners involved in b2b/industrial marketing. Ross Brennan was the former professor of industrial marketing at the University of Hertfordshire, UK. Louise Canning is Associate Professor of Marketing at Kedge Business School, Marseille France. Helen McGrath is Lecturer in Marketing at University College Cork, Ireland.