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Online Auction

I. INTRODUCITON
Auctions are as modern as today's technology, yet as old as mankind. The Internet, however, has expanded the scope and reach of this market mechanism beyond the wildest dreams of its traditional purveyors. Unlike traditional auctions that were limited in scope, online auctions have brought this mechanism to the masses, providing them with an all-encompassing selection of goods they can buy or sell.
In recent years we have seen the emergence of electronic marketplace that leverages information technology to create more efficient markets. The Internet has dramatically changed how people see and buy goods. Millions of globally dispersed consumers now engage in competitive exchange via bidding and can set prices that reflect real-time supply and demand as efficiently as any trading floor. The physical limitations of traditional auctions such as geography, presence, time, space, and a small target population virtually disappear in online settings. The Internet provides a critical mass of consumers located on different continents, who could, with a click of their mouse buttons, participate simultaneously in multiple auctions. Participants are also relieved of the social awkwardness and time-consuming nature of face-to-face haggling—many simply automate their bidding, letting the computer take care of negotiation.
The ability to bring together buyers and sellers at such a massive scale may be both a blessing and curse for the effectiveness of electronic marketplace. On the other hand, it is a blessing since buyers reap the benefits of greater product diversity with potentially lower prices and sellers are able to reach a greater pool of potential buyers.
Auctions on the internet represent a fascinating new exchange mechanism. Every day, hundreds of thousands of goods are auctioned online, from Star Wars action figures to laboratory ventilation hoods. Internet auctions already represent billions of dollars in transactions, and have been growing at a...