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1 – 10 of 638Lihua Chen, Liying Wang and Yingjie Lan
In this paper, the main focus is on supply and demand auction systems with resource pooling in modern supply chain from a theoretical modeling perspective. The supply and demand…
Abstract
Purpose
In this paper, the main focus is on supply and demand auction systems with resource pooling in modern supply chain from a theoretical modeling perspective. The supply and demand auction systems in modern supply chains among manufacturers and suppliers serve as information sharing mechanisms. The purpose of this paper is to match the supply and demand such that a modern supply chain can achieve incentive compatibility and economic efficiency. The authors design such a supply and demand auction system that can integrate resources to efficiently match the supply and demand.
Design/methodology/approach
The authors propose three theoretic models of modern supply chain auctions with resource pooling according to the Vickrey auction principle. They are supply auction model with demand resource pooling, demand auction model with supply resource pooling, and double auction model with demand and supply resource pooling. For the proposed auction models, the authors present three corresponding algorithms to allocate resources in the auction process by linear programming, and study the incentive compatibility and define the Walrasian equilibriums for the proposed auction models. The authors show that the solutions of the proposed algorithms are Walrasian equilibriums.
Findings
By introducing the auction mechanism, the authors aim to realize the following three functions. First is price mining: auction is an open mechanism with multiple participants. Everyone has his own utility and purchasing ability. So, the final price reflects the market value of the auction. Second is dynamic modern supply chain construction: through auction, firm can find appropriate partner efficiently. Third is resources integration: in business practices, especially in modern supply chain auctions, auctioneers can integrate resources and ally buyers or sellers to gain more efficiency in auctions.
Originality/value
In the paper, the authors propose three theoretic models and corresponding algorithms of modern supply chain auctions with resource pooling according using the Vickrey auction principle, which achieves three functions: price mining, dynamic modern supply chain construction and resources integrating. Besides, these proposed models are much closer to practical settings and may have potential applications in modern supply chain management.
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Jin Gi Kim, Hyun-Tak Lee and Bong-Gyu Jang
This paper examines whether the successful bid rate of the OnBid public auction, published by Korea Asset Management Corporation, can identify and forecast the Korea…
Abstract
Purpose
This paper examines whether the successful bid rate of the OnBid public auction, published by Korea Asset Management Corporation, can identify and forecast the Korea business-cycle expansion and contraction regimes characterized by the OECD reference turning points. We use logistic regression and support vector machine in performing the OECD regime classification and predicting three-month-ahead regime. We find that the OnBid auction rate conveys important information for detecting the coincident and future regimes because this information might be closely related to deleveraging regarding default on debt obligations. This finding suggests that corporate managers and investors could use the auction information to gauge the regime position in their decision-making. This research has an academic significance that reveals the relationship between the auction market and the business-cycle regimes.
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Transparent and fair price discovery is essential to commodity market participants in the trade value chain for competitive benefit. The purpose of this paper is to investigate…
Abstract
Purpose
Transparent and fair price discovery is essential to commodity market participants in the trade value chain for competitive benefit. The purpose of this paper is to investigate the price discovery of Indian cardamom at e-auction, spot and futures markets in addition to the existence of the day of the week effect at e-auction apart from exploring a novel price risk management framework.
Design/methodology/approach
This study used Johansen co-integration, vector error correction model, Granger causality and regression with dummy variables to understand a day of the week effect in high-value agri-commodity of cardamom e-auction prices. These price data were based on authenticated sources of Spices Board India and Multi Commodity Exchange of India Ltd.
Findings
The statistical results indicate price discovery exists in the e-auction market and it leads to spot and futures prices. cardamom e-auction prices are negatively related to cardamom futures and positively related to spot prices. It also finds the non-existence of the day of the week effect in the high-value cardamom e-auction system in India. The study revealed that a cardamom e-auction is more active in price discovery than a cardamom futures contract.
Research limitations/implications
These results shall facilitate policymakers to explore intervention of online forward market mechanism at the national level to ensure price discovery and market efficiency. However, the study did not explore reasons for the non-equilibrium of a cardamom futures contract with spot and e-auction market.
Practical implications
The results of this study are useful in understanding the price discovery of cardamom e-auction and its role in the spot and futures market. Cardamom price discovery depends upon the e-auction system; any change of auction policy shall be binding on Indian cardamom prices. The introduction of an online forward market mechanism as described in the paper shall facilitate price risk management apart from improving the efficiency of price discovery.
Originality/value
This is the first study considering cardamom e-auction, spot and futures prices in the price discovery process in India. Statistical results of a day of the week effect clearly show no significant volatility of cardamom prices during the week. Besides, this study did not find the role of cardamom futures contracts intended to serve the economic function of price discovery and price risk management. Hence, suggests policy intervention for implementing an online Forward Market mechanism for Indian cardamom to ensure market efficiency and manage price risk.
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Xiang T.R. Kong, Ray Y. Zhong, Gangyan Xu and George Q. Huang
The purpose of this paper is to propose a concept of cloud auction robot (CAR) and its execution platform for transforming perishable food supply chain management. A new paradigm…
Abstract
Purpose
The purpose of this paper is to propose a concept of cloud auction robot (CAR) and its execution platform for transforming perishable food supply chain management. A new paradigm of goods-to-person auction execution model is proposed based on CARs. This paradigm can shift the management of traditional manual working to automated execution with great space and time saving. A scalable CAR-enabled execution system (CARES) is presented to manage logistics workflows, tasks and behavior of CAR-Agents in handling the real-time events and associated data.
Design/methodology/approach
An Internet of Things enabled auction environment is designed. The robot is used to pick up and deliver the auction products and commends are given to the robot in real-time. CARES architecture is proposed while integrating three core services from auction workflow management, auction task management, to auction execution control. A system prototype was developed to show its execution through physical emulations and experiments.
Findings
The CARES could well schedule the tasks for each robot to minimize their waiting time. The total execution time is reduced by 33 percent on average. Space utilization for each auction studio is improved by about 50 percent per day.
Originality/value
The CAR-enabled execution model and system is simulated and verified in a ubiquitous auction environment so as to upgrade the perishable food supply chain management into a new level which is automated and real-time. The proposed system is flexible to cope with different auction scenarios, such as different auction mechanisms and processes, with high reconfigurability and scalability.
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Eric van Heck, Ana Clara Souza, Marlei Pozzebon and Maira Petrini
This study aims to explore how a microlending digital platform connects social investors in developed countries and micro-entrepreneurs in Africa. However, additional research is…
Abstract
Purpose
This study aims to explore how a microlending digital platform connects social investors in developed countries and micro-entrepreneurs in Africa. However, additional research is necessary to discuss how online auction models are designed and implemented and how existing theories can explain their use in the so-called developing countries.
Design/methodology/approach
The research is based on a single case study: an online auction model for microlending named AfricaMC. Two main methods collected empirical data, namely, online participant observation, i.e. real-time participation in the online auction market and in the forum of discussions, where the authors observed the processes of microlending transactions as registered members; analysis of online documents, by reviewing forum discussions, analyzing reports, blogs, chats and other materials.
Findings
The results suggest that using sociological and information systems theoretical lenses in a complementary manner could provide greater value than using economics.
Originality/value
The study makes two main contributions. First, it mobilizes a pluralist theoretical approach based on economic, sociological and information systems perspectives to improve the understanding of microlending digital platforms using online auction models. Second, it uses the understanding produced from data analysis of one particular African case to validate propositions derived from these three theoretical approaches that might be applied to other cases.
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Professionals from the dairy sector commonly believe that the results of Global Dairy Trade (GDT) auctions are a good leading indicator for prices of dairy commodities. The…
Abstract
Purpose
Professionals from the dairy sector commonly believe that the results of Global Dairy Trade (GDT) auctions are a good leading indicator for prices of dairy commodities. The purpose of this paper is to test that hypothesis for prices of key dairy commodities (skimmed milk powder (SMP), whole milk powder (WMP), butter and cheddar) in the main dairy markets (the US, EU and Oceania).
Design/methodology/approach
The leading properties of the GDT auctions are investigated using vector error correction models (VECM).
Findings
The results show that prices at GDT auctions may be treated as a benchmark for global prices of WMP and SMP as they affect prices in all considered markets. However, in case of EU market the relationship with the GDT is bidirectional. GDT prices reveal some leading properties also in cheddar market, however price relationships in this market are much more complex. In case of butter market, GDT can be regarded as a benchmark only for Oceania.
Practical implications
The results of this paper improve knowledge on price transmission in dairy markets, show the role of the GDT auctions in the price setting process, and thus may help professionals from the dairy sector to formulate their price expectations more precisely.
Originality/value
Despite the fact that many professionals from the dairy sector treat GDT auctions as a benchmark, so far their leading properties have not been scientifically proven.
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The purpose of this study is to determine whether the fine wine market is efficient between homogeneous lots and heterogeneous lots.
Abstract
Purpose
The purpose of this study is to determine whether the fine wine market is efficient between homogeneous lots and heterogeneous lots.
Design/methodology/approach
Auction price data for homogeneous (or solid) lots of fine wines was analyzed to create price prediction models. Those models were used to predict the expected auction price for the bottles within heterogeneous lots. Lastly, models were created to explain and predict the differences between expected and realized prices for heterogenous wine lots.
Findings
The results show that large inefficiencies exist. The more complex and expensive the heterogeneous lot, the greater the discount relative to what would have been realized if the bottles had been sold individually. This discount can exceed 50% of the expected auction price.
Practical implications
Heterogeneous lots may arise as a practical requirement from the auction house. Restaurant buyers probably have little interest in such lots because of the inclusion of wines the restaurant will be unable to sell. Collectors may be uniquely positioned to benefit from this price discount.
Originality/value
These results are unique in the literature, because the price dynamics of heterogeneous (or mixed) lots of fine wines have not previously been studied.
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Rosane Hungria-Gunnelin, Fredrik Kopsch and Carl Johan Enegren
The role of list price is often discussed in a narrative describing sellers’ preferences or sellers’ price expectations. This paper aims to investigate a set of list price…
Abstract
Purpose
The role of list price is often discussed in a narrative describing sellers’ preferences or sellers’ price expectations. This paper aims to investigate a set of list price strategies that real estate brokers have available to influence the outcome of the sale, which may be many times self-serving.
Design/methodology/approach
By analyzing real estate brokers’ arguments on the choice of the list price level, a couple of hypotheses are formulated with regard to different expected outcomes that depend on the list price. This study empirically tests two hypotheses for the underlying incentives in the choice of list price from the real estate broker’s perspective: lower list price compared to market value leads to the higher sales price, lower list price compared to market value leads to a quicker sale. To investigate the two hypotheses, this paper adopts different methodological frameworks: H1 is tested by running a classical hedonic model, while H2 is tested through a duration model. This study further tests the hypotheses by splitting the full sample into two different price segments: above and below the median list price.
Findings
The results show that H1 is rejected for the full sample and for the two sub-samples. That is, contrary to the common narrative among brokers that underpricing leads to a higher sales price, underpricing lower sales price. H2, however, receives support for the full sample and for the two sub-samples. The latter result points to that brokers may be tempted to recommend a list price significantly below the expected selling price to minimize their effort while showing a high turnover of apartments.
Originality/value
Although there are a large number of previous studies analyzing list price strategies in the housing market, this paper is one of the few empirical studies that address the effect of list price choice level on auction outcomes of non-distressed housing sales.
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Detmar Straub, Merrill Warkentin, Arun Rai and Yi Ding
Firms embedded in networks of relations are theorized through Gnyawali and Madhavan’s (2001) (G&M) structural embeddedness model to gain competitive advantage from topological…
Abstract
Purpose
Firms embedded in networks of relations are theorized through Gnyawali and Madhavan’s (2001) (G&M) structural embeddedness model to gain competitive advantage from topological characteristics. Empirical studies to support their theory have never been executed in full. Our study provided a full empirical test of their model in a digital trading network to achieve a higher degree of certainty that those network structural characteristics can have a major impact on the degree to which certain firms lead to competitiveness in a digital trading network environment.
Design/methodology/approach
To examine how firms respond in competitive situations, we chose the hyper-active digital trading network, eBay as our empirical context. We used eBay auction data to analyze how the network characteristics of eBay resellers impact their competitive behaviors.
Findings
Our study found strong support for the G&M model of competitiveness. We offer explanations for where support was not as strong as the Gynawali and Madavan theory proposes.
Research limitations/implications
Our research is limited by our chosen context and findings in support of part of G&M model. Future studies in other digital contexts are needed to enhance the modeling of network topologies and further study the impacts of network density and structural autonomy on competitive action.
Practical implications
Our study suggests that managers proceed cautiously in forming partnerships, weighing circumstances where the firm can find itself with increased information power and avoiding, to the greatest extent possible, situations where the playing field is roughly equal.
Social implications
Theory-making in this domain has begun as well as initial empirical testing. Much more needs to be accomplished, though, before embeddedness modeling can be thought of as being well established.
Originality/value
The G& M Model of competitiveness is an SNA explanation of why some competitive units succeed and others do not. Our study is the first, full blown empirical analysis of the theory.
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Juliana Pacheco Barbosa, Joisa Dutra Saraiva and Julia Seixas
The purpose of this paper is to highlight the opportunity for the energy policy in Brazil to tackle the very high cost-effectiveness potencial of solar energy to the power system…
Abstract
Purpose
The purpose of this paper is to highlight the opportunity for the energy policy in Brazil to tackle the very high cost-effectiveness potencial of solar energy to the power system. Three mechanisms to achieve ambitious reductions in the greenhouse gas emissions from the power sector by 2030 and 2040 are assessed wherein treated as solar targets under ambitious reductions in the greenhouse gas emissions from the power sector. Then, three mechanisms to achieve these selected solar targets are suggested.
Design/methodology/approach
This paper reviews current and future incentive mechanisms to promote solar energy. An integrated energy system optimization model shows the most cost-efficient deployment level. Incentive mechanisms can promote renewable sources, aiming to tackle climate change and ensuring energy security, while taking advantage of endogenous energy resources potential. Based on a literature review, as well as on the specific characteristics of the Brazilian power system, under restrictions for the expansion of hydroelectricity and ambitious limitation in the emissions of greenhouse gases from the power sector.
Findings
The potential unexploited of solar energy is huge but it needs the appropriate incentive mechanism to be deployed. These mechanisms would be more effective if they have a specific technological and temporal focus. The solar energy deployment in large scale is important to the mitigation of climate change.
Originality/value
The value of the research is twofold: estimations of the cost-effective potential of solar technologies, generated from an integrated optimization energy model, fully calibrated for the Brazilian power system, while tacking the increasing electricity demand, the expected reduction of greenhouse gas emissions and the need to increase the access to clean and affordable energy, up to 2040; proposals of three mechanisms to deploy centralized PV, distributed PV and solar thermal power, taking the best experiences in several countries and the recent Brazilian cases.
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