Should we collude? Analyzing the benefits of bidder cooperation in online group-buying auctions

Chen, Jian; Chen, Xilong; Kauffman, Robert J.; Song, Xinwei

doi:10.1016/j.elerap.2008.11.010

Cited by 84 publications

(41 citation statements)

References 22 publications

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“…Tsvetovat et al [62] indicated that there are two kinds of protocols in groupbuying auctions. Under a post-negotiation protocol, consumers form a bidding ring [10] before negotiating with suppliers. Under a pre-negotiation protocol, a ring is formed after negotiations with suppliers are done.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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Consumer adoption of group-buying auctions: an experimental study

2010

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Internet-based group-buying auctions enable consumers to obtain volume discounts, but they face risk and trust issues that are not present in other e-retailing formats, which affects their adoption by consumers. Bidders experience uncertainty about the final auction price, and the risk of whether the auction will be completed. We evaluate textual comments and the number of bids made in an auction as drivers of a consumer's perceived financial and psychological risks toward the group-buying auction mechanism and trust in the auction initiator. We use an Internet-based experimental test bed for online groupbuying auctions and will report on one experiment that we conducted. Our results indicate that textual comments made by the participants about sellers in past auctions and existing bids affected a consumer's perceived trust in the auction initiator and the financial risk of the mechanism. Positive textual comments and more bids appear to enhance perceived trust in the auction initiator and reduce financial risk, and other consumers are more willing to make bids as a result. Consumers continued to express concerns about the uncertainty of the final group-buying auction price though.

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Section: Theoretical Backgroundmentioning

confidence: 99%

“…A group-buying auction uses a price curve to associate discounted unit prices with quantity demanded. Group-buying consumers benefit from bidding cooperation, unlike what occurs in English auctions, unless collusion to achieve lower prices occurs [10]. Everyone in the group pays the same final auction price.…”

Section: Introductionmentioning

confidence: 98%

Consumer adoption of group-buying auctions: an experimental study

2010

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“…One of the other important features on GBP is that buyers' collusion is beneficial for both the seller and buyers [6]. This means that the seller should encourage all buyers to communicate with each other to gain a lower price.…”

Section: Introductionmentioning

confidence: 99%

Group-buying price mechanism with two suppliers

Guan

2013

2013 10th International Conference on Service Systems and Service Management

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Group buying price (GBP) mechanism is a useful pricing mechanism in online selling. In this study, we focus on the case that buyers are small retailers, and there are two suppliers in the market. Retailers' ordering choice is discussed, and we also study how the supplier should set the GBP price curve. The conclusion shows that to beat the fixed price, the supplier should not use a small slope price curve. And retailers' group buying is not always better for the supplier.

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“…Data of Mobshop-listed products over various periods of time is collected and three effects are found which are important for customers' joining decision [6].Dynamic group-buying pricing mechanism outperforms fixed pricing mechanisms when the seller faces uncertain market [7]. The effect of cooperation among bidders in group-buying is analyzed and finds that cooperation can improve profits for both sellers and bidders which is different from traditional auctions [8].…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Customer Perceived Service Quality on the Optimal Group-Buying Strategy

Wu¹,

Zhu²

2016

Proceedings of the 2016 International Conference on Applied Mathematics, Simulation and Modelling

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Abstract-In this paper, we study the popular group-buying model in which theseller offers discount on the group-buying websites to attract new customers coming to experience its service. This paper analyses seller's pricing decision between only running offline business and joining the group-buying business. We find that when only running offline business, higher perceived service quality will bring more profit for the seller. However, if the seller joins the group-buying website and the perceived service quality is relatively low, seller's profit will decrease with it. If the seller's service quality is higher than the perceived service quality, he will improve his regular price after joining the group-buying website. Moreover, only when the group-buying website scale is relatively big can the seller make more profit by joining the group-buying website.

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Should we collude? Analyzing the benefits of bidder cooperation in online group-buying auctions

Cited by 84 publications

References 22 publications

Consumer adoption of group-buying auctions: an experimental study

Consumer adoption of group-buying auctions: an experimental study

Group-buying price mechanism with two suppliers

The Effect of Customer Perceived Service Quality on the Optimal Group-Buying Strategy

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