An Exploratory Study of the Introduction of Online Reverse Auctions

  title={An Exploratory Study of the Introduction of Online Reverse Auctions},
  author={Sandy D. Jap},
  journal={Journal of Marketing},
  pages={107 - 96}
  • Sandy D. Jap
  • Published 1 July 2003
  • Business
  • Journal of Marketing
Buyers are increasingly turning to online reverse auctions in their negotiations with suppliers. How do these price competition mechanisms affect buyer–supplier relationships? The author considers this question in the context of a quasi experiment involving six online reverse auctions conducted in the supply base of a major industrial buyer. The results indicate that these auctions increase both new and current suppliers’ beliefs that buyers act opportunistically, particularly in open-bid… 

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