A lattice framework for pricing display advertisement options with the stochastic volatility underlying model

Advertisement (abbreviated ad) options are a recent development in online advertising. Simply, an ad option is a first look contract in which a publisher or search engine grants an advertiser a right but not obligation to enter into transactions to purchase impressions or clicks from a specific ad slot at a pre-specified price on a specific delivery date. Such a structure provides advertisers with more flexibility of their guaranteed deliveries. The valuation of ad options is an important topic and previous studies on ad options pricing have been mostly restricted to the situations where the underlying prices follow a geometric Brownian motion (GBM). This assumption is reasonable for sponsored search; however, some studies have also indicated that it is not valid for display advertising. In this paper, we address this issue by employing a stochastic volatility (SV) model and discuss a lattice framework to approximate the proposed SV model in option pricing. Our developments are validated by experiments with real advertising data: (i) we find that the SV model has a better fitness over the GBM model; (ii) we validate the proposed lattice model via two sequential Monte Carlo simulation methods; (iii) we demonstrate that advertisers are able to flexibly manage their guaranteed deliveries by using the proposed options, and publishers can have an increased revenue when some of their inventories are sold via ad options.Comment: Bowei Chen and Jun Wang. A lattice framework for pricing display advertisement options with the stochastic volatility underlying model. Electronic Commerce Research and Applications, 2015, Volume 14, Issue 6, pages 465-479, ISSN: 1567-422

Challenges to describe QoS requirements for web services quality prediction to support web services interoperability in electronic commerce

Quality of service (QoS) is significant and necessary for web service applications quality assurance. Furthermore, web services quality has contributed to the successful implementation of Electronic Commerce (EC) applications. However, QoS is still the big issue for web services research and remains one of the main research questions that need to be explored. We believe that QoS should not only be measured but should also be predicted during the development and implementation stages. However, there are challenges and constraints to determine and choose QoS requirements for high quality web services. Therefore, this paper highlights the challenges for the QoS requirements prediction as they are not easy to identify. Moreover, there are many different perspectives and purposes of web services, and various prediction techniques to describe QoS requirements. Additionally, the paper introduces a metamodel as a concept of what makes a good web service

Fairs for e-commerce: the benefits of aggregating buyers and sellers

In recent years, many new and interesting models of successful online business have been developed. Many of these are based on the competition between users, such as online auctions, where the product price is not fixed and tends to rise. Other models, including group-buying, are based on cooperation between users, characterized by a dynamic price of the product that tends to go down. There is not yet a business model in which both sellers and buyers are grouped in order to negotiate on a specific product or service. The present study investigates a new extension of the group-buying model, called fair, which allows aggregation of demand and supply for price optimization, in a cooperative manner. Additionally, our system also aggregates products and destinations for shipping optimization. We introduced the following new relevant input parameters in order to implement a double-side aggregation: (a) price-quantity curves provided by the seller; (b) waiting time, that is, the longer buyers wait, the greater discount they get; (c) payment time, which determines if the buyer pays before, during or after receiving the product; (d) the distance between the place where products are available and the place of shipment, provided in advance by the buyer or dynamically suggested by the system. To analyze the proposed model we implemented a system prototype and a simulator that allow to study effects of changing some input parameters. We analyzed the dynamic price model in fairs having one single seller and a combination of selected sellers. The results are very encouraging and motivate further investigation on this topic

Mobile Commerce and Applications: An Exploratory Study and Review

Mobile commerce is enabling the development of additional revenue streams for organizations through the delivery of chargeable mobile services. According to the European Information Technology Observatory, the total amount of revenue generated by mobile commerce was reported to be less than {\pounds}9 million in the United Kingdom in 2001. By 2005 this had, at least, doubled and more recent industry forecasts project significant global growth in this area. Mobile commerce creates a range of business opportunities and new revenue streams for businesses across industry sectors via the deployment of innovative services, applications and associated information content. This paper presents a review of mobile commerce business models and their importance for the creation of mobile commerce solutions.Comment: Journal of Computing online at https://sites.google.com/site/journalofcomputing

Using webcrawling of publicly available websites to assess E-commerce relationships

We investigate e-commerce success factors concerning their impact on the success of commerce transactions between businesses companies. In scientific literature, many e-commerce success factors are introduced. Most of them are focused on companies' website quality. They are evaluated concerning companies' success in the business-to- consumer (B2C) environment where consumers choose their preferred e-commerce websites based on these success factors e.g. website content quality, website interaction, and website customization. In contrast to previous work, this research focuses on the usage of existing e-commerce success factors for predicting successfulness of business-to-business (B2B) ecommerce. The introduced methodology is based on the identification of semantic textual patterns representing success factors from the websites of B2B companies. The successfulness of the identified success factors in B2B ecommerce is evaluated by regression modeling. As a result, it is shown that some B2C e-commerce success factors also enable the predicting of B2B e-commerce success while others do not. This contributes to the existing literature concerning ecommerce success factors. Further, these findings are valuable for B2B e-commerce websites creation

An open standard for the exchange of information in the Australian timber sector

The purpose of this paper is to describe business-to-business (B2B) communication and the characteristics of an open standard for electronic communication within the Australian timber and wood products industry. Current issues, future goals and strategies for using business-to-business communication will be considered. From the perspective of the Timber industry sector, this study is important because supply chain efficiency is a key component in an organisation's strategy to gain a competitive advantage in the marketplace. Strong improvement in supply chain performance is possible with improved business-to-business communication which is used both for building trust and providing real time marketing data. Traditional methods such as electronic data interchange (EDI) used to facilitate B2B communication have a number of disadvantages, such as high implementation and running costs and a rigid and inflexible messaging standard. Information and communications technologies (ICT) have supported the emergence of web-based EDI which maintains the advantages of the traditional paradigm while negating the disadvantages. This has been further extended by the advent of the Semantic web which rests on the fundamental idea that web resources should be annotated with semantic markup that captures information about their meaning and facilitates meaningful machine-to-machine communication. This paper provides an ontology using OWL (Web Ontology Language) for the Australian Timber sector that can be used in conjunction with semantic web services to provide effective and cheap B2B communications