Dynamic Alliance Auctions
Tobias Ihde
- 08 oktober 2003
- 9783790800982
Samenvatting:
1.1 Motivation Today's transportation market is far from perfect. After all, the items in transportation markets are usually traded under extreme time pressure: transportation orders have fixed pick-up and delivery deadlines and free transportation capacity cannot be used thereafter.
The book introduces the new auction format known as ‘Dynamic Alliance Auctions’ which has been developed for Internet-based transportation marketplaces. The format allows for a packagewise placement of transportation orders even if these orders stem from different shippers. This, in turn, increases utilization of truck capacity and reduces risk for carriers. It also results in bringing down transportation prices without shrinking margins. After examining the landscape of Internet-based transportation marketplaces, the book identifies vital characteristics and needs of transportation business. The book shows how Dynamic Alliance Auctions combine ideas of matching theory, auctions and bargaining to fit these needs. Finally, the performance of this auction format is investigated analytically and experimentally using a modified private-value framework and different informational settings.
1.1 Motivation Today's transportation market is far from perfect. Market participants have admission only to a certain fraction of the market and price formation lacks transparency. However, this state is no law of nature since in principle, all market participants could manage to get together somehow and do business - but gaining new business partners beyond existing bonds usually takes too high efforts. After all, the items in transportation markets are usually traded under extreme time pressure: transportation orders have fixed pick-up and delivery deadlines and free transportation capacity cannot be used thereafter. Here, Internet-based freight markets promise help. Since the early 1990s many of such markets have come into existence so that a considerable number ex ists today. For Germany alone, over 50 different electronic transportation marketplaces are listed in a database hosted at the University at Bremen (2001). The mediation models of these marketplaces are quite diverse (cp.