Content area
Full Text
Introduction
Much has been written about reverse electronic auctions (e-auctions), and although reverse auctions are themselves not a new concept, they have increased in prominence for business-to-business users as a direct result of being made more accessible, easy to use, easy to implement, and cost effective by internet technology ([35] Hannon, 2003). However, the study of e-auctions is still in the early stages and there remains a dearth of substantial empirical research and much more to uncover. The introduction of e-auctions has presented organisations with a need to review their purchasing processes and relationships with their buyers/suppliers. Technology is fast moving and as a consequence, there is a lag in terms of organisations learning to implement and assimilate any new technology into organisational processes and culture ([80] Tassabehji, 2003). Interestingly, recent research has found that there is no real distinction between early and late adopters of e-auctions in terms of benefits achieved ([63] Schoenherr, 2008), and that past success influences favourable opinions of them ([3] Caniëls and van Raaij, 2009).
However, there is opposition as well as support for e-auctions by business users. In direct response to the divergent attitudes to e-auctions, an emerging stream of operations research explores in more detail the computational issues and evolving e-auctions forms ([62] Rothkopf and Whinston, 2007). For example, bidding practices in the field of e-sourcing ([14] Elmaghraby, 2007); advanced auction formats, such as combinatorial auctions, and their application in transportation ([4] Caplice, 2007), machine scheduling ([39] Heydenreich et al. , 2007), and pay-per-click advertising ([27] Feng et al. , 2007); the effect of auction design parameters on buyer surplus ([52] Mithas and Jones, 2007); the impact of collusion on sealed bid auctions ([66] Sosic, 2007); and transaction costs (bidder's time) in completing the auction ([50] Kwasnica and Katok, 2007). This stream of research is underpinned by a fundamental belief that the e-procurement technology in general and e-auctions in particular, are here to stay for the long term.
Despite this, tensions seem to remain between buyers who are perceived to be enjoying the benefits of reduced costs and increased competition, and suppliers where there is resentment at the perceived destruction of long-term co-operative relationships and a feeling of being coerced to participate in e-auctions ([70] Tassabehji et al.