Showing papers in "Electronic Commerce Research in 2005"

Dynamic Pricing and the Direct-to-Customer Model in the Automotive Industry

Abstract: The Internet is changing the automotive industry as the traditional manufacturer and dealer structure faces increased threats from third party e-tailers. Dynamic pricing together with the Direct-to-Customer business model can be used by manufacturers to respond to these challenges. Indeed, by coordinating production and inventory decisions with dynamic pricing, the automotive industry can increase profits and improve supply chain performance. To illustrate these benefits, we discuss a strategy that incorporates pricing, production scheduling, and inventory control under production capacity limits in a multi-period horizon. We show that under concave revenue curves, a greedy algorithm provides the optimal solution, and we describe extensions to the model such as multiple products sharing production capacity. Using computational analysis, we quantify the profit potential and sales variability due to dynamic pricing, and we suggest that it is possible to achieve significant benefit with few price changes.

Improvements to the Linear Programming Based Scheduling of Web Advertisements

Abstract: We propose and evaluate a number of improvements to the linear programming formulation of web advertisement scheduling, which we have proposed elsewhere together with our colleagues [Langheinrich et al., 9]. In particular, we address a couple of important technical challenges having to do with the estimation of click-through rates and optimization of display probabilities (the exploration–exploitation trade-off and the issue of data sparseness and scalability), as well as practical aspects that are essential for successful deployment of this approach (the issues of multi-impressions and inventory management). We propose solutions to each of these issues, and assess their effectiveness by running large-scale simulation experiments.

Probabilistic Automated Bidding in Multiple Auctions

Abstract: This paper presents an approach to develop bidding agents that participate in multiple auctions with the goal of obtaining an item with a given probability. The approach consists of a prediction method and a planning algorithm. The prediction method exploits the history of past auctions to compute probability functions capturing the belief that a bid of a given price may win a given auction. The planning algorithm computes a price and a set of compatible auctions, such that by sequentially bidding this price in each of the auctions, the agent can obtain the item with the desired probability. Experiments show that the approach increases the payoff of their users and the welfare of the market.

The First International Trading Agent Competition: Autonomous Bidding Agents

Abstract: This article summarizes the bidding algorithms developed for the on-line Trading Agent Competition held in July, 2000 in Boston. At its heart, the article describes 12 of the 22 agent strategies in terms of (i) bidding strategy, (ii) allocation strategy, (iii) special approaches, and (iv) team motivations. The common and distinctive features of these agent strategies are highlighted. In addition, experimental results are presented that give some insights as to why the top-scoring agents' strategies were most effective.

Secure E-Coupons

Abstract: As the Internet is getting easier and faster to use, electronic coupon (e-coupon) distribution is becoming a more and more popular advertising technique. E-coupons are the digital analogue of paper coupons which are used to provide customers with discounts or gift in order to incentive the purchase of some products. Nowadays, the potential of digital coupons has not been fully exploited on the web. This is mostly due to the lack of “efficient” techniques to handle the generation and distribution of e-coupons. In this paper we discuss models and protocols for e-coupons satisfying a number of security requirements. Furthermore we present a lightweight implementation of our protocol, which preserves the privacy of the users, since it does not require any registration phase.

CROC: A New Evaluation Criterion for Recommender Systems

Abstract: Evaluation of a recommender system algorithm is a challenging task due to the many possible scenarios in which such systems may be deployed. We have designed a new performance plot called the CROC curve with an associated statistic: the area under the curve. Our CROC curve supplements the widely used ROC curve in recommender system evaluation by discovering performance characteristics that standard ROC evaluation often ignores. Empirical studies on two domains and including several recommender system algorithms demonstrate that combining ROC and CROC curves in evaluation can lead to a more informed characterization of performance than using either curve alone.

Time efficiency of ct colonography: 2d vs 3d visualization

Abstract: We aimed to compare the time efficiency of three visualization methods in CT colonography and to identify the colonic factors influencing the time for interpretation. Twenty CT colonographic examinations were prospectively analysed. Three reading methods were adopted: method 1, primary 2D analysis with the use of virtual endoscopy as problem solver, method 2, primary standard virtual endoscopy with semiautomatic navigation through the colon and use of 2D images as problem solver; method 3, primary virtual endoscopy with automatic navigation and the use of 2D images as problem solver. In method 1, time for 2D analysis ranged between 6 and 18min (mean 12) for evaluation of both supine and prone decubitus with a synchronization method. In method 2, time for 3D manual navigation in supine plus prone ranged between 9 and 24min (mean 17). In method 3, time for automated navigation ranged between 6 and 20min (mean 12) for evaluation of both supine and prone decubitus. A statistically significant difference was found between time efficiency of methods 1 and 2 (p=0.009, t-test, unequal variances). Methods 2 and 3 showed a tendency to significant differences (p=0.054, t-test, unequal variances). Faecal or fluid residuals were reported as major drawbacks in 3D navigations, requiring constant correlation with 2D images; tortuous folds influenced mostly the 2D analysis; diverticula were reported as influencing factor in all three methods. No differences in sensitivity and specificity were observed between the three viewing methods. The 3D semiautomatic navigation method* tended to increase the time for interpretation in almost all cases. There is, in particular, greatest time efficiency for 2D analysis as compared with 3D manual analysis. Two-dimensional and automated 3D navigation reading have comparable time efficiencies in a routine clinical setting.

Managing the Performance Impact of Web Security

Abstract: Security and performance are usually at odds with each other. Current implementations of security on the web have been adopted at the extreme end of the spectrum, where strong cryptographic protocols are employed at the expense of performance. The SSL protocol is not only computationally intensive, but it makes web caching impossible, thus missing out on potential performance gains. In this paper we discuss the requirements for web security and present a solution that takes into account performance impact and backwards compatibility.

Dynamic Pricing for Time-Limited Goods in a Supplier-Driven Electronic Marketplace

Abstract: Existing e-commerce systems employ a pull model of marketing where buyers, possibly through agents, search the e-market for suppliers offering the product of their choice. In contrast, the push model where suppliers' agents approach buyers with their products, has been relatively less investigated. Push strategies are particularly appropriate for commodities that have a short shelf-life and, therefore, an elastic demand curve, allowing suppliers to exploit unexpected supply. The speed and low cost of e-commerce makes it particularly suited to the push paradigm. In this paper, we consider time-limited goods in a supplier driven marketplace that employs the push model of marketing. When constrained by a strict deadline to sell the good, the supplier uses a mobile sales agent that visits every buyer and estimates the short run demand curve of the good. At every buyer, the sales agent also employs a heuristic technique called the Maximum Returns Algorithm to recalculate the price of the good, so that the supplier can obtain the best possible gross returns from trading with the buyers. On the other hand, when the deadline to sell is not stringent, the sales agent negotiates the exchange at a point that improves both the buyer's utility and the supplier's profit, as compared to the exchange point without negotiation.

The Social Contract Core

Abstract: The information age has brought with it the promise of unprecedented economic growth based on the efficiencies made possible by new technology. This same greater efficiency has left society with less and less time to adapt to technological progress. Perhaps the greatest cost of this progress is the threat to privacy we all face from unconstrained exchange of our personal information. In response to this threat, the World Wide Web Consortium has introduced the “Platform for Privacy Preferences” (P3P) to allow sites to express policies in machine-readable form and to expose these policies to site visitors [Cranor et al., 8]. However, today P3P does not protect the privacy of individuals, nor does its implementation empower communities or groups to negotiate and establish standards of behavior. It is only through such negotiation or feedback that new social contracts can evolve. We propose a privacy architecture, the Social Contract Core (SCC), designed to use technology to facilitate this feedback and so speed the establishment of new “Social Contracts” needed to protect private data. The goal of SCC is to empower communities, speed the “socialization” of new technology, and encourage the rapid access to, and exchange of, information. Addressing these issues is essential, we feel, to both liberty and economic prosperity in the information age [Kaufman et al., 17].

Decentralized Peer-to-Peer Auctions

Abstract: This paper proposes a flexible architecture for the creation of Internet auctions. It allows the custom definition of the auction parameters, and provides a decentralized control of the auction process. Auction policies are defined as laws in the Law Governed Interaction (LGI) paradigm. Each of these laws specifies not only the auction algorithm itself (e.g., open-cry, Dutch, etc.) but also how to handle the other parameters usually involved in the online auctions, such as certification, auditioning, and treatment of complaints. LGI is used to enforce the rules established in the auction policy within the agents involved in the process. After the agents find out about the actions, they interact in a peer-to-peer communication protocol, reducing the role of the centralized auction room to an advertising registry, and taking profit of the distributed nature of the Internet to conduct the auction. The paper presents an example of an auction law, illustrating the use of the proposed architecture.

Prices in a Shopbot Market

Abstract: Shopbots are Internet agents that automatically search for information pertaining to price and quality goods and services. We study the impact on prices and price dispersion of such software agents. It is shown that price dispersion is a phenomenon which is independent of heterogeneity in E-tailers characteristics that is even if E-tailers provide the same service offerings, price dispersion remains whenever a captive market exists. Moreover, an increase in information does not reduce price dispersion but in general will increase it.

Simultaneous Independent Online Auctions with Discrete Bid Increments

Abstract: Decentralized multi-item auctions offer great opportunities for integrating fragmented online auction markets into larger markets with more efficient outcomes. This paper extends the theory of multi-item ascending auctions of substitutes by considering any finite positive bid increment and allowing the bidders to bid asyn-chronously instead of bidding in a round-robin fashion. We consider a setup where the bidders' utilities over multiple items are additive and bound the maximum inefficiency in the allocation when the bidders follow a simple greedy strategy. We also obtain the limits within which the prices of individual items can vary from one outcome to another. For the special case of single unit bidder demand, we also bound the maximum surplus which a bidder can extract by unilaterally switching to some other strategy. The paper suggests an upper bound for the minimum required bid increment which would be necessary for competitive price discovery and truthful bidding in a practical online implementation.

Practices, Perceptions and Avenues of Net-Based Promotions

Abstract: Net as a medium is endowed with unique characteristics that has assisted the growth of e-commerce and in turn increased use of net-based sales promotions. The paper examines the practices, perceptions of net users and avenues of consumer sales promotions through this medium. To gain insight into current practices, consumer sales promotion on general, specialised and e-commerce sites were studied. An online survey of 161 net users was carried out to examine perceptions of net-based promotions over ten dimensions. The most frequently promoted product categories across sites were apparel, airlines, and books. Price-off followed by free gift offer was the most commonly used type of promotions. The results of various ANOVA tests revealed that perceptions did not vary across type of promotions but varied across product categories. Based on these findings managerial implications are discussed.

Towards Autonomous and Automatic Evaluation and Negotiation in Agent-Mediated Internet Marketplaces

Abstract: In an agent-mediated B2C Internet marketplace, agents, mobile or stationary, can act on behalf of customers to complete tasks involved in buying and selling products. In this paper, we first present a fuzzy-set based two-phase evaluation model allowing mobile agents to evaluate and filter online e-shops, and evaluate offers autonomously and automatically at the request from a consumer. The fuzzy evaluation criterion takes into account not only the attributes of offers, but also the reputation of corresponding e-shops. }Meanwhile, the two-phase operations can help reduce the scale of mobile agents dispatched to e-shops and thus reduce the network workload. Based on the same fuzzy evaluation criterion, an auction-like negotiation model is presented, where the consumer agent can autonomously determine the initial offer and negotiate with multiple shops simultaneously. The final best offer is determined not only by the attributes of the offers, but also the attributes of the e-shops as well as the preference the consumer specified. Finally, our models presented in this paper have been implemented in a prototype system where we conducted some experiments to evaluate their performance.

A Scalable Pricing Model for Bandwidth Allocation

Abstract: In this paper, we present a scalable pricing model for dynamic bandwidth allocation. Using simulation we demonstrate that service providers can achieve increased revenue as well as better resource utilization without compromising user specified levels of Quality of Service (QoS). Our model allows for increasing the revenue while maintaining an acceptable level of QoS, this is done by selecting an appropriate bandwidth allocation policy, to reduce the number of blocked users.

Performance Evaluation of Multi-Object Auctions

Abstract: The paper evaluates the performance of two multi-object auction models: sequential and simultaneous, using different performance measures. The objects put up for auction have different synergies for different bidders. We define different types of bidders who can exist in these multi-object auction models. The classification of bidders is based on the bidding strategies they use. We then study the effects of different parameters in auction and bidding strategies, on the performance of these auction models by simulating them using a JAVA based framework.

An Open Generic Corba-Programmable Videoconferencing Platform

Abstract: In this paper we address the design and implementation of a generic terminal architecture for videoconferencing based on the principle of programmable protocol stacks. In this architecture, there exist two types of software components. A first type are the multimedia engines, which are responsible for handling the multimedia stream (execution layer). Secondly, the managing components handle the multimedia engines' lifecycles and provide a set of network- and codec-independent CORBA-IDL interfaces which make building the desired protocol stack straightforward (middleware based control layer). As a result, the developed platform can be easily integrated in existing multimedia control frameworks such as the TINA architecture or the H.323 terminal framework.