Chapter 6

Yankee auctions

English auctions that offer multiple unites of an item for sale and allow bidders to specify the quantity they want to buy

Online community

a gathering place for people and businesses that does not have a physical existence

Virtual community

a gathering place for people and businesses that does not have a physical existence

Web community

a gathering place for people and businesses that does not have a physical existence

Reserve

a minimum acceptable price established by sellers

Reserve price

a minimum acceptable price established by sellers

Group purchasing site

a site where the seller posts an item with a tentative price. As individual buyers enter bids on the item, the site operators negotiate with the seller to obtain a lower price. The posted price will decrease as the number of bids increases, but only if the number of bids increases.

Wireless Application Protocol (WAP)

allows web pages formatted in HTML to be displayed on devices with small screens, such as mobile phones

Ascending-price auction

an auction where bidders publicly announce their successive higher bids until no higher bid is forthcoming; also called an English auction, open auction, or open-outcry auction

Escrow service

an independent party that holds a buyer's payment until the buyer receives the purchased item and is satisfied that the item is what the seller represented it to be

Apps

application software that can run on mobile phones

Open-outcry double auction

auction conducted by the Chicago Board Options Exchange where buy and sell offers are shouted by traders standing in a small area on the exchange floor called a trading pit

First-price sealed-bid auction

auction where bidders submit their bids independently and are usually prohibited from sharing information w/ each other. The highest bidder wins. If multiple items are auctioned, successive lower (next highest) bidders are awarded the remaining items at the prices they bid

Sealed-bid auctions

bidders submit their bids independently and are usually prohibited from sharing information with each other

English auction

bidding publicly announce their successive higher bids until no higher bid is forthcoming; ascending-price auction, open auction, or open-outcry auction

Dutch auction

bidding starts at a high price and drops until a bidder accepts

Double auction

buyers & sellers each submit combined price-quantity bids to an auctioneer.

Bulletin board systems (BBSs)

computers that allowed users to connect using dial-up connections through telephone lines to read and post messages in a common discussion forum that resembled an electronic version of a physical bulletin board

M-commerce

confluence of tech made doing business online using mobile devices

Location aware services

customized advertising or other services transmitted by Web sites to mobile devices based on mobile devices transmitted location

Virtual learning network

distance learning platforms for student instructor interaction. Ex Blackboard

Consumer-to-business

e-commerce that occurs in general consumer auctions

Social networking site

facebook, twitter, instagram etc.

Liquidation brokers

firms that find buyers for unusable and excess inventory

Reward-based crowdfunding

investors pay in advance for products (or services) to be delivered when the company makes them using the invested funds

Auctioneer

manages the whole auction process

Usenet newsgroups

message posting areas on Usenet computers in which interested persons can discuss specific topics

Mobile wallets

mobile phones that function credit cards

Rooting

modifying an Android operating system

Jailbreaking

modifying an Apple iPhone's operating system

Reserve auction

multiple sellers submit price bids to an auctioneer who represents a single buyer

Seller-bid auction

multiple sellers submit price bids to an auctioneer who represents a single buyer

Sniping software

observes auction progress until the last second or two of the auction clock and then bids

Massive open online course (MOOC)

online course that is offered at no cost and can attract hundreds of thousands of students

Shill bidder

people employed by the seller or auctioneer who can make bids on behalf of the seller

Idea-based social networking

people participating in idea-based social media

Bidders

potential buyers

Bids

prices a bidder is willing to pay for the item

Open-outcry auction

see English auction, ascending-price auction, or open auction

Open auction

see English auction, ascending-price auction, or open-outcry auction

Group shopping site

see Group purchasing site

Vickrey auctions

see second-price sealed-bid auctions

Usenet

set of interconnected computers devoted to storing information on specific topics

Tweets

short messages from Twitter

Reverse bid

site routes the visitor's request to a group of participating merchants who reply to the visitor by e-mail with offers to supply the item at a particular price

Meetups

sites that allow people to discuss issues, plan strategies, and arrange in-person meetings

Crowdfunding

social networking sites that provide funds for a business idea to entrepreneurs who can sell partial ownership in their ventures to investors

Open source software

software available to the public

Auction consignment services

takes an item and creates an online auction for that item, handle the transaction, and remit the balance of the proceeds after deducting a fee that ranges from 25 to 50 percent of the selling price obtained

Snipe

the act of placing a winning bid at the last second

Minimum bid increment

the amount by which one bid must exceed the previous bid

Private valuations

the amounts a bidder is willing to pay for an item that is up for auction

Look-in effect

the basic economic fact where existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites

Monetizing

the conversion of existing regular site visitors seeking free information or services into fee-paying subscribers or purchasers or services

Social networking

the intra-community interaction among members of a virtual community

Social shopping

the practice of bringing buyers and sellers together in a social network to facilitate retail sales

Microlending

the practice of lending very small amounts of money to people who are starting or operating small businesses especially in developing countries

Minimum bid

the price at which the auction begins

Winner's curse

the psychological phenomenon where bidders risk becoming caught up in the excitement of competitive bidding and then bidding more than their private evaluations

Second-price sealed-bid auction

the same as the first-price sealed-bid auction except that the highest bidder is awarded at the price bid by the second-highest bidder

Particpatory journalism

trend toward having readers help write their own news

Texting

using SMS

Microblogs

Web sites such as twitter that function as a very informal blog site with entries that are limited to 140 characters length

Proxy bid

a bid that automatically increases to the next highest increment needed to exceed any bid, up to a bidder-specified maximum bid

Phablet

a combination of a phone and tablet

Tablet devices

a device that is smaller than a laptop yet larger than a smartphone

Descending-price auctions

a form of open auction in which bidding starts at a high price and drops until a bidder accepts the price; synonymous w/ Dutch auctions

Idea-based social media

abstract communities based on the connections between ideas

Short message service (SMS)

allows mobile phone users to send short text messages to each other