1. Manoj Kumar, Stuart I. Feldman Presented by Bhaskaran Raman
Internet Auctions
Manoj Kumar, Stuart I. Feldman
Presented by
Bhaskaran Raman
22-Sep-18

2. Overview Motivation Auction methods Security requirements
Steps in auction process, Design
Further Issues
Comments & Discussion
ebay.com, auctionwatchers.com...
22-Sep-18

3. Motivation Why auctions? Why Internet auctions?
Best price, Guaranteed sale
Why Internet auctions?
Low overhead
Will encourage auction of small purchases as well
22-Sep-18

4. Auction Methods Open-cry (English) auctions Sealed bid Dutch auctions
22-Sep-18

5. English Auctions Each buyer can hear all other bids
Counter-bid within limited time
Physical auctions: within seconds
Cyber auctions: minutes/hours
Requires bidders to collect at a place at a particular time
22-Sep-18

6. Sealed bid Does not require bidders to collect
Buyers specify bid by a deadline
Bids are secret until the deadline
Auctioneer announces winner
Single round - no bidding frenzy
Multiple round addresses this
22-Sep-18

7. Dutch Auction Price goes down with time First bidder wins
Appropriate for perishable goods
Can control how fast the goods are sold
22-Sep-18

8. Variations Anonymity Rules for ending Restrictions on bidding amount
of bids, bidders, winning bid, amount of inventory
Rules for ending
time based
based on minimum price (Dutch)
Restrictions on bidding amount
22-Sep-18

9. Variations Discriminative/Yankee Auction Non-discriminative Auction
winners pay what they bid
Non-discriminative Auction
winning bids pay the lowest winning bid (for sale of multiple similar items)
Vickerey auction
winner pays second highest bid
22-Sep-18

10. Properties Vickerey auction Revenue-Equivalence
Encourages true valuations
Revenue-Equivalence
Vickerey, Dutch, Open cry, Sealed bid: yield same revenue
Given: one item, bidders are risk neutral, valuations are independent, bidders know only their valuation
22-Sep-18

11. Security Requirements
Registration of buyers/sellers
Authentication/secrecy of bids
Non-repudiation
Preventing collusion
Preventing shills
22-Sep-18

12. Steps in Auctioning Registration Set up an event
Scheduling and advertising
Bidding
Evaluation
Trade settlement
22-Sep-18

13. Design Object model (??) Process flow model (????)
Auction, Buyer, Seller, Search, Trade, Message…
Process flow model (????)
User Interface (??????)
HTML, Say that its important
Java - future work
22-Sep-18

14. Further Issues Choosing the right auction method Bidding agents
Dutch for perishables
Dutch discourages collusion
Open cry preferred to sealed bid in the internet
Bidding agents
22-Sep-18

15. Comments & Discussion Just software design? Real issues not solved
Security
Non-repudiation
Trust model
Transactional property
Fault tolerance issues
22-Sep-18

16. ebay.com Sellers & buyers register Small consumer goods
Sealed bid, Dutch
No non-repudiation?
Shills?
ebay.com trusted
22-Sep-18

17. auctionwatchers.com Meta site Auction tracking of computer equipments
onsale.com - Open cry auctions
egghead.com
Regn required credit card
webauction.com
22-Sep-18