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Explain important information about auctions

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Explain Important information about Auctions

While auctions can be a means to acquiring a price point I don't feel that auctions can be used in all cases regarding e-business. When you look at pricing parity and currency exchanges, auctions might have a hard time setting a true price point. What could probably work is to use the Big Mac Index to initially set a bottom in price and develop an auction that goes from there. Setting up an auction that takes these measures into account can ensure that the seller will be properly compensated. What you don't want in an auction is a bid under the true value of the product just to drive down the price. Collusion is something that can become a possibility with certain industries especially where there is extreme competition. I'm not really sure if auctions are really going to be a standard that is followed in e-business.

Reference no: EM1325893

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