Infographic Template Galleries

Created with Fabric.js 1.4.5 C) AUCTIONS AND EXCHANGES INTERNET MARKET A) THE SET PRICE MECHANISM B) BUYER-SELLER NEGOTIATED PRICE MECHANISM C.1) Classic AuctionC.2) Reverse buying model: competition across sellers leads to a price.C.3) Exchanges: multiple buyers and multiple sellers interact to set prices B.1) Specified starting point. (seller establishes a starting price)B.2) Non specified starting point.DISADVANTAGES:- It takes longer than the set price mechanism.- Requires pricing authority for effective negotiation. The Internet has revolutionized the exchanges between buyer and sellers. On the one hand it allows prospective buyers to specify in detail the products requirements. On the other hand it permits suppliers to update prices in response to demand. PRICING & MARKET MAKING ON THE INTERNET The internet has changed the way many markets are organized and the mechanisms via which prices are set. Nowadays some sites offer a combination of these 3 different market mechanisms. Although the effect on the price depends on the nature of the product, generally price information availability to buyers will drive prices down. SUMMARY by David Ares de parga & Juan Saraza. Group F-3 CECO 3 DIFFERENT MECHANISM OF TRANSACTING:-A) THE SET PRICE MECHANISM-B) THE BUYER/SELLER NEGOTIATED PRICE MECHANISM-C) AUCTIONS AND EXCHANGES T The seller sets a fixed price and the buyer could accept it or reject it.ADVANTAGES: - Low transaction costs (no haggling).- Perception of fairness (every buyer must pay same price.- Boots & Spider webs wich compare prices and features. - Provides lower prices and better value for customers.- Raises important price management issues.- More accurate info than in the real world market.
Create Your Free Infographic!