20-09-2016, 10:03 AM
1455254100-netauction.doc (Size: 29.5 KB / Downloads: 4)
ABSTRACT
Auctions are among the oldest economic institutions in place. They have been used since antiquity to sell a wide variety of goods, and their basic form has remained unchanged. In this dissertation, we explore the efficiency of common auctions when values are interdependent- the value to a particular bidder may depend on information available only to others-and asymmetric. In this setting, it is well known that sealed-bid auctions do not achieve efficient allocations in general since they do not allow the information held by different bidders to be shared.
Typically, in an auction, say of the kind used to sell art, the auctioneer sets a relatively low initial price. This price is then increased until only one bidder is willing to buy the object, and the exact manner in which this is done varies. In my model a bidder who drops out at some price can “reenter” at a higher price.
With the invention of E-commerce technologies over the Internet the opportunity to bid from the comfort of ones own home has seen a change like never seen before. Within the span of a few short years, what may have began as an experimental idea has grown to an immensely popular hobby, and in some cases, a means of livelihood, the online auction gathers tremendous response everyday, all day. With the point and click of the mouse, one may bid on an item they may need or just want, and in moments they find that either they are the top bidder or someone else wants it more, and you’re outbid! The excitement of an auction all from the comfort of home is a completely different experience.
The levels of comfort may rise in the near future but the rules to be followed remain the same. Infact may rise with the new technologies.
Society cannot seem to escape the criminal element in the physical world, and so it is the same with online auctions. This is one area wherein a question can be raised as to how safe online auctions.
Auction:
An auction is a sale in which a seller presents his product on a public platform/ forum. The selling price in an auction is determined by the bids made by interested buyers. The price they bid is based on their own valuation of, and need for, the product. The product is sold to the highest bidder. A potential buyer participates by bidding on an item that a seller has listed. The person who has offered the highest bid at close of auction wins the right to purchase the item at that price.
Bid:
A bid is the amount of money proffered for an item that has been put on sale in an auction. The bidder competes with other potential buyers, keeping in mind that the buyer with the highest bid is obliged to complete the purchase with the seller. In other words, your bid tells other buyers, "I want to buy this item at this price."
Win:
You win an auction by placing the winning (read highest) bid and obtaining the item on auction. The person with the highest bid is the winner of the auction. Now that you're familiar with how an auction generally works.
TYPES OF AUCTION:
There are three different types of auctions.
Straight Auction:
The price of the product on auction increases with every incremental bid. The price increases as per the minimum bid increment set by the seller. The seller must sell the item to the highest bidder at the close of the auction. For example, if a seller has put up product 'A' for sale with a reserve price of Rs.10 and five buyers bid for it with the highest bid coming in from buyer 'B' who bids Rs.12, the product is sold to 'B' for Rs.12.
Dutch Auction:
This is an auction where the number of units of a particular product for sale is more than one. This simply means that a number of identical products have been put up for sale by the seller. In an auction like this, there will obviously be more than one winner. Buyers can also bid for more that one unit of that product. At the end of the auction all the bidders pay the same price - the lowest winning bid amount (subject to the reserve price being met) for the product. This is a perfect auction type for those who wish to sell many units of the same product. Here is how it works: The Seller starts by listing a minimum price or starting bid for a product and the quantity or number of units for sale. Bidders specify both a bid price and the quantity they wish to buy. All winning bidders pay the same price per item - the lowest successful bid. If there are more buyers than items, the earliest successful bids get the goods. Higher bidders are more likely to get the quantity they asked for. Bidders can refuse partial quantity. For example, if you place a bid for 10 items and only 8 are available after the auction, you are not obliged or bound to buy any of them. Example Case: A seller places 10 pens on auction at Re.1 each. 10 people bid Re. 1 for one pen each. In this case, all 10 bidders will win a pen for Rs. 1. However if, let's say, five people bid Rs. 1.25 for a pen each and 10 others bid Re. 1. The minimum bid for the pen will be raised to Rs. 1.25 because demand exceeds supply. Because the Rs. 1.25 bidders bid higher than the Re. 1 bidders, they will be guaranteed a pen. The other 5 pens will go to the earliest Re. 1 bidders. The final price for each pen will be Re. 1 (even though some participants placed a higher bid of Rs. 1.25) since all winning bidders pay the same price - which is the lowest successful bid. In this format at the time of allocation of the quantities the preference is given to the buyer who puts in the highest bid and he/she will get the quantity he bid for and this flows progressively down the bidding value stream.
Note: Even for a multiple quantity Auction, the winning bid amount displayed is for single quantity. The winner has to pay an amount which is equal to the winning bid amount multiplied by the quantities (units) he has bid for.
Sealed Auction:
As the name suggests, a Sealed Auction is an auction in which the bid prices are hidden or undisclosed. It's almost like making a 'Tender' wherein one party doesn't know the price offered by any other party.
The Project Contains The Following Modules
1. Administrator Module
2. User Registration Module
3. Selling Module
4. Binding Module
5. Search Module
6. Authetication Module
Hardware Requirements :-
The following are the minimum Hardware Requirements.
Processor Pentium III or Higer
Speed 800 MHz
Monitor EGA/VGA
Hard Disk 20 GB
RAM 256 MB
Software Requirements :-
The following are the minimum Software Requirements.
Operating System Windows NT
Languages C#
Web Server IIS 5.0
Web Technologies ASP.NET,HTML, JavaScript.
Back End Oracle 9i or MS-Access or MS-SQL Server