Chapter 6 Terms

yankee auctions

English auctions- offer multiple units of an item for sale, buyer can pick quantity to buy

private valuations

amount a bidder is willing to pay for an item

minimum bid increment

amount by which one bid must exceed the previous bid

Apps

application software that can run on mobile phones

open auction

auction where bidders publically announce their successive higher bids until no higher bid is forthcoming

Ascending-price auction

auction where bidders publicly announce their successive higher bids until no higher bid is forthcoming. (English auction, open auction, open-outcry auction)

first-price sealed-bid auction

auction where bidders submit their bids independently and are usually prohibited from sharing information with each other- the highest bidder wins

lock-in effect

basic economic fact where existing auction sites (eBay) are inherently more valuable to customers than new ones

proxy bid

bid that automatically increases to the next highest increment needed to exceed any bid

English auction

bidders publicaly announce their successive higher bids until no higher bid is forthcoming

sealed-bid auction

bidders submit their bids independently and are usually prohibited from sharing information with one another

double auction

buyers and sellers each submit combine price-quantity bids to an auctioneer. Auctioneer mtache sthe sellers' offers to the buyers' offers

bulletin board system (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

mobile commerce m-commerce

confluence of technologies made doing business online using mobile devices

monetizing

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

location aware services

customized advertising or other services transmitted by web sites to mobile devices based on the device's transmitted locations

virtual learning network

distance-learning platforms such as Blackboard for student-teacher interaction

consumer-to-business

electronic commerce that occurs in general consumer auctions

liquidation brokers

firms that finds buyers for unusable and excess invenotory

dutch auctoin

form of open auction, bidding starts at a high price and drops until a bidder accepts the rate (descending price)

wireless application pool (WAP)

formats HTML-based sites to be viewed/displayed on small screens like phones

online community

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

virtual community

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

web community

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

escrow service

indpendent party that holds a buyer's payment until the buyer receives the purchased item and is satisfied with it

social networking

intra-community interaction among members of a virtual community

reward-based crowdfunding

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

microlending

lending very small amounts of money to people who are starting or operating small business practices

auctioneer

manages the auction process

usenet newsgroups

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

reserve price

minimum acceptable price by sellers

reserve

minimum accepted price established by sellers

mobile wallets

mobile phones that function credit cards (Apple Pay)

rooting

modifying Android operating systems

jailbreaking

modifying an iOS operating system (Apple)

reverse 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

massive open online course (MOOC_

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

descending price auction

open auction Bidding starts at a high

shill bidder

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

Idea-based social networking

people participating in idea-based social media

phablet

phone tablet

bidders

potential buyers

minimum bid

price at which the auction begins

bids

prices a bidder is willing to pay for the item

winner's curse

psychological phenomenon where bidders risk being caught up in the competition of bidding and therefore bid higher

open-outcry auction

same as English auction

Group shopping site

same as group purchasing site

tweets

short messages sent from one twitter user to another

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

group purchasing site

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 decreases as the number of bids increases only if the number of bids increases.

meetups

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

tablet devices

smaller than a laptop yet larger than a smartphone

crowdfunding

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

open source software

software developed by a community of programmers who make the software available for download at no cost

Vickrey auctions

synonymous with second-price sealed-bid auctions

snipe

the act of placing a winning bid at the last second

social shopping

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

second-price sealed-bid auction

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

participatory journalism

trend towards having readers help write their own news

texting

using SMS

social networking site

websites that facilitate interactions among members of a virtual community

open-outcry double auction

Conducted by the Chicago Board Options Exchange. Buy and Sell offers are shouted by traders standing in a small area on a trading pit

microblogs

Sites like Twitter with very informal blog-style entries limited to character limit (140)

Auction consignment services

Take an item and create an online auction that item, handle the transaction, and remit the balance of proceeds after deducting a fee that ranges from 25-50%

Idea-based social media

abstract communities based on the connections between ideas

short messaging service SMS

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