Internet Auctions
Universiteit Maastricht
Faculty of Economics and Business
Maastricht, 29 November 2006
Julius Mährlein
ID Number: 409448
Study: International Business
Course Code: 103BB
Group Number: 12
Tutor Name: Norman Dytianquin
Language Tutor Name: Gabriel Campbell
Main Writing Assignment
Table of contents
1. Introduction…………………………………………………………………………….3
2. What are internet auctions and how do they work?........................................................4
3. The benefits users can retrieve from internet auctions……………….. ……………….5
3.1. The benefits to sellers
3.2. The benefits to buyers
4. Welfare effects…………………………………………………………………………6
5. A different demand and supply model…………………………………………………7
6. Conclusion……………………………………………………………..........................7
1. Introduction
In the last ten years internet auctions have become increasingly popular. If people, whether private or not, want to purchase something for less than the market price they will most probably look it up on eBay or another auction site. If they want to find and buy something really rare, or want to sell something rare, they will probably go online. Today internet auctions have been established as an important part of both consumer to consumer e-commerce, and business to business e-commerce in today’s economies. They have become a perfectly accepted part of the world economy and are largely trusted. When ...