Choosing between Auctions and Negotiations in Online B2B Markets for IT Services: The Effect of Prior Relationships and Performance

The choice of contract allocation mechanism in procurement affects such aspects of transactions as information exchange between buyer and supplier, supplier competition, pricing and, eventually, performance. In this study we investigate the buyer’s choice between reverse auctions and bilateral negotiations as an allocation mechanism for IT services contracts. Prior studies into allocation mechanism choice focused on factors pertaining to discrete exchange situation, such as con-tract complexity or availability of suppliers. We broaden the research by focusing on buyers’ past exchange relationships with vendors. Based on the literature on the economics of contracting and agency theory, we hypothesize that prior re-peat interaction with vendors favors the use of negotiations over auctions in the next transaction, while the need to explore the marketplace due to buyer’s inexperience or dissatisfaction with vendor’s performance in the most recent project leads to the use of auctions instead of negotiations. We find support for these hypotheses in a longitudinal dataset of 2,081 IT projects realized by 91 repeat buyers at a leading online services marketplace over a period of eight years. Taken together, the results show that analyzing B2B auctions and negotiations should move beyond analyzing discrete instances and instead analyze them in the context of the individual firm’s history and supplier strategy.outsourcing;IT services;online marketplace;reverse auctions

Internet sales as a new mode of internationalization

The way that organizations explore the Internet has been the focus of a substantial body of scientific studies and non-academic reflection. The main goal of this study is to analyze the potential of the internet as a mode of internationalization and the factors that influence the results of the adoption of this mean to access foreign markets. For this purpose, we examine the determinants of the level of international sales made via internet estimating an ordered probit model. The results show that the importance of previous experience in using the internet and developing international activity, together with the level of internet marketing budget , the level of investment on internet sophistication, the firm dimension, the business age and the type pf activity are variables that determine the results obtain in the international sales trough the internet.info:eu-repo/semantics/publishedVersio

Task Selection for Bandit-Based Task Assignment in Heterogeneous Crowdsourcing

Task selection (picking an appropriate labeling task) and worker selection (assigning the labeling task to a suitable worker) are two major challenges in task assignment for crowdsourcing. Recently, worker selection has been successfully addressed by the bandit-based task assignment (BBTA) method, while task selection has not been thoroughly investigated yet. In this paper, we experimentally compare several task selection strategies borrowed from active learning literature, and show that the least confidence strategy significantly improves the performance of task assignment in crowdsourcing.Comment: arXiv admin note: substantial text overlap with arXiv:1507.0580

Community Philanthropy and Social Media

Summarizes trends in technological adoption by community foundations since 2005 and the role online marketplaces, social networks, wikis, and other resources play in community philanthropy. Discusses emerging developments and their implications

Inefficiencies in markets for intellectual property rights: experiences of academic and public research institutions

The formal use of such intellectual property rights (IPR) as patents and registered copyright by universities has increased steadily in the last two decades. Mainstream arguments, embedded in economic theory and policy, advocating the use of IPR to protect academic research results are based on the view that IPR marketplaces work well and allow universities to reap significant benefits. However, there is a lack of evidence-based research to justify or critically evaluate these claims. Building upon an original survey of 46 universities and public research organizations in the United Kingdom, this study analyses the quality of the institutions underpinning the markets for patents and copyright, investigating potential inefficiencies that could lead to underperformance of the IPR system. These include ‘IPR market failures’ with respect to search processes and transparency; price negotiation processes; uncertainties in the perception of the economic value of IRP and the relationship with R&D cost. Further sources of underperformance may include ‘institutional failures’ with respect to enforcement and regulation. Particular attention is paid to the role of governance forms (e.g. alternative types of licensing agreements) through which IPR exchanges take place. We find that a high share of universities report market failures in IPR transactions and that the choice of IPR governance forms matter for the obstacles that are encountered. Given the importance of widely disseminating university research outcomes to foster innovation and economic development, the presence of inefficiencies in IPR markets suggests that such objectives could best be achieved by encouraging open distribution of knowledge, rather than privatization of academic knowledge

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