Single-unit and multi-unit auction framework for peer-to-peer transactions

Peer-to-peer transactions appear in smart grids as a way to enable the direct transaction of energy among end-users (i.e., consumers, producers, and prosumers). This concept promotes the efficient use of local renewable energy sources among neighbours. Several studies proposed the application of peer-to-peer models for energy communities, microgrids, and aggregators to decrease energy costs for end-users and to promote the balance between consumption and generation. In this paper, it is proposed a framework to test, and validate, using a real environment, single- and multi-unit peer-to-peer auctions. It is also proposed six lightweight fully distributed peer-to-peer auction models, avoiding the need for a central operator. The lightweight of the proposed models enables their execution in the fog-computing layer using single-board computers deployed in end-users. The proposed framework, together with the proposed day-ahead models, was tested and validated in a real microgrid with five prosumers. The results of two weeks are discussed using a comparative economic analysis. The proposed framework and models were able to reduce energy costs for the end-users, promoting competitive free market behaviours, with multi-unit models outperforming single-unit models in the overall trading efficiency and monetary profits.This work has received funding from the European Union's Horizon 2020 research and innovation programme under project DOMINOES (grant agreement No 771066) and from FEDER Funds through COMPETE program and from National Funds through FCT under the project UIDB/00760/2020.info:eu-repo/semantics/publishedVersio

Who Gets the Job? Synthesis of Literature Findings on Provider Success in Crowdsourcing Marketplaces

Background: Over the past decade, crowdsourcing marketplaces — online exchange platforms which facilitate commercial outsourcing of services — have witnessed a dramatic growth in the number of participants (service providers and customers) and the value of outsourced services. Deciding about the most appropriate provider is a key challenge for customers in crowdsourcing marketplaces because available information about providers may be incomplete and sometimes irrelevant for customer decisions. Ineffective information impedes many service providers to develop long-term relationships with customers, obtain projects on a regular basis and survive on crowdsourcing marketplaces. Previous studies have investigated the impact of a range of factors on customers’ choice decisions and providers’ success, given the important role of customer–provider relationship development for long-term success on crowdsourcing marketplaces. Method: This paper reviews the literature of crowdsourcing marketplaces with the aim of developing a comprehensive list of factors that influence customers’ choice decisions and providers’ success. Results: We found 31 conceptually distinct profile information components/factors that determine customers’ choices and providers’ business outcomes on crowdsourcing marketplaces. Conclusion: We classified these 31 factors into five major categories: 1) prior relationship between a customer and a provider or a customer’s invitation, 2) providers’ bidding behavior, 3) crowdsourcing marketplace or auction characteristics, 4) providers’ profile information, and 5) customer characteristics. The main factors in each category, associated considerations, related literature gaps and avenues for future research are discussed in detail

Integration of Blockchain and Auction Models: A Survey, Some Applications, and Challenges

In recent years, blockchain has gained widespread attention as an emerging technology for decentralization, transparency, and immutability in advancing online activities over public networks. As an essential market process, auctions have been well studied and applied in many business fields due to their efficiency and contributions to fair trade. Complementary features between blockchain and auction models trigger a great potential for research and innovation. On the one hand, the decentralized nature of blockchain can provide a trustworthy, secure, and cost-effective mechanism to manage the auction process; on the other hand, auction models can be utilized to design incentive and consensus protocols in blockchain architectures. These opportunities have attracted enormous research and innovation activities in both academia and industry; however, there is a lack of an in-depth review of existing solutions and achievements. In this paper, we conduct a comprehensive state-of-the-art survey of these two research topics. We review the existing solutions for integrating blockchain and auction models, with some application-oriented taxonomies generated. Additionally, we highlight some open research challenges and future directions towards integrated blockchain-auction models

Exploring Sellers' Experiences in the C2C Online Auction Environment

Online auction websites are becoming increasingly important as an intermediary for both sellers and buyers. They offer consumers an alternative source of goods to those sold at retail stores and other second-hand traditional consumer-to-consumer (C2C) channels, such as garage sales or flea markets. They also represent a new market model which incorporates a new distribution channel and a new means of establishing prices. Some researchers predict that retailers are now facing a new competition and the potential for declining sales as a result of the cannibalisation effect of the C2C online auction market. Noticeably, although much research has been carried out in an attempt to understand online auctions in relation to buying behaviour, little effort has been made to investigate the dynamic nature of individual sellers, in particular C2C sellers, in the online auction environment. Therefore, this study is aimed at filling in the gaps by exploring the sellers' behaviour and experiences in the C2C online auction environment. Its objectives are: (1) to explore the learning process that individual sellers go through in the C2C online auction environment; and (2) to find out what skills and techniques are commonly used by sellers and how these skills have been applied when marketing their products in the online auction environment. This study used a qualitative method, and a market-oriented ethnography was adopted. Data was collected through semi-structured in-depth interviews with sellers on TradeMe and from a wide range of archival documents. Nineteen sellers were recruited to participate into this study. Consequently, a learning model has been built, based on the consumer socialisation model, to explain the learning process of sellers as they become experienced in the C2C online auction environment. The findings from this study highlighted that sellers went through a learning process to become more experienced in online auctions. Moreover, different learning methods occurred at different stages of the learning process, including social interaction, observing and imitating, rewards and punishments, and other sources of information. This study also demonstrated the fact that sellers both implicitly and explicitly perceived the importance of marketing strategies and tactics and had extensively applied them. Several implications and recommendations arise from this study, including the need for more in-depth research on sellers' behaviour and experiences, using a longitudinal approach. Additionally, it is recommended that TradeMe should continue to improve their auction site in order to attract more sellers which, in turn, will lead to a greater number of buyers

Behavioral economics as applied to firms: a primer

We discuss the literatures on behavioral economics, bounded rationality and experimental economics as they apply to firm behavior in markets. Topics discussed include the impact of imitative and satisficing behavior by firms, outcomes when managers care about their position relative to peers, the benefits of employing managers whose objective diverges from profit-maximization (including managers who are overconfident or base pricing decisions on sunk costs), the impact of social preferences on the ability to collude, and the incentive for profit-maximizing firms to mimic irrational behavior.Behavioral economics, bounded rationality, experimental economics, oligopoly, antitrust

Market Mechanisms Towards Secondary Spectrum Usage

Widespread adoption of smartphones, tablets and other smart devices has resulted in mobile operators (MOs) making a transition from voice to data centric business model. As a consequence there has been an increase in demand for radio spectrum. Spectrum availability in the future can be a cause of concern, the main reason of which is being attributed to the traditional and inflexible approach towards spectrum management. Hence it is required to overhaul the existing spectrum management techniques and adopt those models which aim at higher spectrum utilization. As part of our research methodology we first perform a state-of-the-art review on secondary usage of radio spectrum. We observe that most research assumes a clean slate approach towards the emergence of secondary spectrum markets which are typically designed with an underlying assumption of participating actors being of homogeneous type. In contrast with above we take an evolutionary approach while designing market mechanisms towards heterogeneous secondary usage of spectrum. The evolution of trading markets is reflected in the incremental steps used in our research, i.e. starting from Wireless Fidelity (Wi-Fi IEEE 802.11) capacity markets, followed by super Wi-Fi (IEEE 802.11af) capacity markets and finally TV White Spaces (TVWS) spectrum leasing markets. We make use of Value Network Configuration (VNC) methodology for illustrating the design of market mechanism and further evaluate the designed mechanism using Agent Based Modeling (ABM). Based on our simulation results we observe that a generic trade-off exist between the length of lease time, trade facilitation cost and the extent of trading activity within the markets. We also observe that there exists an optimal range of lease time for which all the market players find themselves in economically favourable situation. We compare super Wi-Fi capacity markets and TVWS spectrum leasing markets over performance of MOs and TV broadcasters and according to our evaluation local area strategy seems to offer more benefits for TVWS spectrum usage