In progress Data-driven decision support in complex markets

Reference:
ERIM PhD RSM PhD FloraHolland

Abstract

While Dutch auction is widely used in agriproducts trading, in recent years, other forms of exchange such as online auction and e-commerce have seen substantial growth. The emergence of such channels creates a very dynamic and complex sales system that sellers and buyers will need to navigate. Several researches have been dedicated to understand the mechanisms and key drivers of individual channels, yet, the interaction between channels and how these channels together shape bidders’ decisions are still left largely underexplored. In this study, under the context of Flora Holland Dutch flower auction, we will address different aspects of bidders’ pricing decisions in a multi-channel auction system. The research is split into 3 specific studies. The first study will look into how bidders’ demand influences price level and how this relationship (or price elasticity) will be shaped by different sales channels including onsite Auction, online Auction and e-commerce. The second study will explore price anchoring effect in auction or in other words how the past information contributes in shaping bidders’ current pricing decisions. Finally, in the third study, we aim to gain further insights into the determinants of price dispersion and how this may change between different channels. The insights from the three studies will provide valuable information and recommendation for sellers and market operator not only in cooperating different sales channels and but also in developing their pricing strategies and decision support system that help to maximize profit.

Keywords

Auction design, Dutch auction, Multi-channel, Pricing dynamics, Price Elasticity, Price Dispersion, Price Reference, Price Anchoring, Online Auction, Dutch flower auction, Willingness to Pay

Time frame

2016 - 2020

Topic

Business Analytics and Information Systems

Supervisory Team

Eric van Heck
Professor of Information Management and Markets
  • Promotor
Wolfgang Ketter
Professor of Next Generation Information Systems
  • Promotor