Electronic Reverse Auctions: Spawning Procurement Innovation in the Context of Arab Culture

Government e-procurement initiatives have the potential to transform local institutions, but few studies have been published of strategies for implementing specific e-procurement tools, particularly involving procurement by a foreign government adapting to local culture in the Middle East/North Africa (MENA). This case describes procurement at a forward operating base (FOB) in Kuwait in support of operations in Iraq. The government procurers had to deal with a phenomenon unique to the MENA region: wasta. Wasta is a form of social capital that bestows power, influence, and connection to those who possess it, similar to guanxi in China. This study explores the value proposition and limitations of electronic reverse auctions (eRA) with the purpose of sharing best practices and lessons learned for government procurement in a MENA country. The public value framework provides valuable theoretical insights for the implementation of a new government e-procurement tool in a foreign country. In a culture dominated by wasta, the suppliers enjoyed the transparency and merit-based virtues of eRA’s that transferred successfully into the new cultural milieu: potential to increase transparency, competition, efficiency, and taxpayer savings. The practices provided herein are designed specifically to help buyers overcome structural barriers including training, organizational inertia, and a lack of eRA policy and guidance while implementing a new e-procurement tool in a foreign country

A Formal Framework for Concrete Reputation Systems

In a reputation-based trust-management system, agents maintain information about the past behaviour of other agents. This information is used to guide future trust-based decisions about interaction. However, while trust management is a component in security decision-making, many existing reputation-based trust-management systems provide no formal security-guarantees. In this extended abstract, we describe a mathematical framework for a class of simple reputation-based systems. In these systems, decisions about interaction are taken based on policies that are exact requirements on agents’ past histories. We present a basic declarative language, based on pure-past linear temporal logic, intended for writing simple policies. While the basic language is reasonably expressive (encoding e.g. Chinese Wall policies) we show how one can extend it with quantification and parameterized events. This allows us to encode other policies known from the literature, e.g., ‘one-out-of-k’. The problem of checking a history with respect to a policy is efficient for the basic language, and tractable for the quantified language when policies do not have too many variables

Fairness Emergence in Reputation Systems

Reputation systems have been used to support users in making decisions under uncertainty or risk that is due to the autonomous behavior of others. Research results support the conclusion that reputation systems can protect against exploitation by unfair users, and that they have an impact on the prices and income of users. This observation leads to another question: can reputation systems be used to assure or increase the fairness of resource distribution? This question has a high relevance in social situations where, due to the absence of established authorities or institutions, agents need to rely on mutual trust relations in order to increase fairness of distribution. This question can be formulated as a hypothesis: in reputation (or trust management) systems, fairness should be an emergent property. The notion of fairness can be precisely defined and investigated based on the theory of equity. In this paper, we investigate the Fairness Emergence hypothesis in reputation systems and prove that , under certain conditions, the hypothesis is valid for open and closed systems, even in unstable system states and in the presence of adversaries. Moreover, we investigate the sensitivity of Fairness Emergence and show that an improvement of the reputation system strengthens the emergence of fairness. Our results are confirmed using a trace-driven simulation from a large Internet auction site.Trust, Simulation, Fairness, Equity, Emergence, Reputation System

EDI and intelligent agents integration to manage food chains

Electronic Data Interchange (EDI) is a type of inter-organizational information system, which permits the automatic and structured communication of data between organizations. Although EDI is used for internal communication, its main application is in facilitating closer collaboration between organizational entities, e.g. suppliers, credit institutions, and transportation carriers. This study illustrates how agent technology can be used to solve real food supply chain inefficiencies and optimise the logistics network. For instance, we explain how agribusiness companies can use agent technology in association with EDI to collect data from retailers, group them into meaningful categories, and then perform different functions. As a result, the distribution chain can be managed more efficiently. Intelligent agents also make available timely data to inventory management resulting in reducing stocks and tied capital. Intelligent agents are adoptive to changes so they are valuable in a dynamic environment where new products or partners have entered into the supply chain. This flexibility gives agent technology a relative advantage which, for pioneer companies, can be a competitive advantage. The study concludes with recommendations and directions for further research

Pandoras Box: Does Electronic Commerce Increase the Optimal Amount of Fraud?

Close business relationships are important in the food industry. However, the introduction of electronic commerce has emerged as a fundamental challenge to these relationships. In particular, retailers who start procuring private label food products in electronic auctions risk the termination of the relationships with their suppliers thus losing the value derived from these relationships. Instead, they move their focal interest towards single, unrelated transactions. The authors argue that this development increases the optimal amount of fraud in electronic commerce. In this context, they analyze the occurrence of opportunism.Relationships, information asymmetry, auctions, opportunism, economics of information, Marketing,

Leveraging Offshore IT Outsourcing by SMEs through Online Marketplaces

Following their larger counterparts, an increasing number of small firms outsource their IT tasks to lower cost offshore destinations. For small firms, however, offshore outsourcing is a difficult undertaking as it involves high transaction costs. Online marketplaces for IT services, which have recently become available to small firms, make offshore IT outsourcing more accessible and manageable, although differences in the marketplace design result in varying outcomes across the marketplaces. This has consequences for SME’s decision as to which online marketplace to use, because different markets may have different types of benefits and costs. This paper sets to analyze some of the similarities and differences between online marketplaces for IT services and their effects for small firms. First, we analyze if and how online marketplaces reduce small firms’ transaction costs in offshore IT outsourcing. Second, we examine the effects of market entry barriers on outcomes of online marketplaces and their implications for small firms. The results indicate that online marketplaces for IT services do reduce transaction costs for small firms in offshore outsourcing across ten specific market processes. More surprising, however, is the finding that the lower market entry barriers for suppliers result in lower prices for buyers without compromising other aspects of market performance.Offshore IT Outsourcing;Online Market;Process-Stakeholder Analysis;Reverse Auction

An Investigation of the Negotiation Domain for Electronic Commerce Information Systems

To support fully automatic business cycles, information systems for electronic commerce need to be able to conduct negotiation automatically. In recent years, a number of general frameworks for automated negotiation have been proposed. Application of such frameworks in a specific negotiation situation entails selecting the proper framework and adapting it to this situation. This selection and adaptation process is driven by the specific characteristics of the situation. This paper presents a systematic investigation of there characteristics and surveys a number of frameworks for automated negotiation

ASPECTS REGARDING ESCROW SERVICES IN ROMANIA, AS AN IMPORTANT PART OF E-COMMERCE ACTIVITY

E-commerce has appeared and developed along with the Internet. Online buyers and sellers can become fraud victims. Escrow Services reduce the number of fraud cases and guarantees online transactions. In Romania, those services are only just beginning to act, as the cyber fraud phenomenon is present in our country in the same rates as worldwide.escrow, e-commerce, cyber - fraud, escrow accounts, legislation, online auctions