Chapter 11

CHAPTER 11

Social Networks – an area online where people who share common ties can interact with one another
1. A group of people
2. Shared social interaction
3. Common ties among members
4. A shared area for some period of time

General Communities – Wide range of topical discussion groups

Practice networks – Discussion groups for help or information in every practice

Interest-based communities – Shared interest grouped based networks

Affinity communities – Group identification networks including, Religion, ethnicity, gender, or political beliefs

Sponsored communities – government sites, branded product sites and many more

DIFFERENT TYPES OF AUCTIONS

English auction – single item is up from a single seller

Traditional Dutch auction – sellers with many identical items sold in lots, as time goes on the price falls

Internet Dutch Auctions – sellers list a minimum price or starting bid

Name your own price or reverse auctions – buyers specify the price they are willing to pay for an item

Benefits of Auctions
1. Liquidity – global marketplace
2. Price discovery – competitively priced based
3. Price transparency – everyone can see the asking and buying price
4. Market efficiency – Offered wide range of selected goods
5. Lower transaction costs – reduced cost of selling and purchasing goods
6. Consumer aggregation – motivated buyers amassed in one marketplace
7. Network effects – both user and seller benefit
8. Market-maker benefits – no inventory caring cost

Cost of auctions
1. Delayed consumption
2. Monitoring cost
3. Equipment cost
4. Trust risk
5. Fulfillment cost
6. Rating system
7. Watch list
8. Proxy bidding