Markets of the Future: Research and Practice of Multidimensional Auctions
(Research Seminar, September 25th, 2003)

Eric van Heck
 Erasmus University’s Rotterdam School of Management

Abstract
Markets are transitioning from place to space. New technologies enable new types of markets and these markets become smarter and more efficient. These markets are being applied in new, innovative ways that previously weren’t feasible, such as markets in supply chains, markets for knowledge exchange, and markets for generating predictions. This presentation will focus on research and practice of electronic multidimensional auctions. It presents three studies carried out by Erasmus University’s research group on the Marketplace of the Future. In a multidimensional auction buyers and sellers negotiate with various combinations of dimensions of a product or service (price, quantity, delivery time, quality, etc.). In the first study we explore the impact of information architecture on the outcome of multidimensional auctions in a procurement situation. Laboratory experiments are carried out and results will be discussed. In the second study we explore multidimensional auctions in the context of trading capacity for mobile messages. Buyers of mobile messages capacity might use multidimensional auctions to procure from sellers such as mobile network operators. The role of information architecture and number of auction rounds is investigated. In the third study we investigate the impact of multidimensional auctions in practice. The results will help to create the ultimate market: one that captures the feel and trust of a physical community but leverages the power and efficiency of technology to benefit all participants.

Related Work
  • Otto Koppius and Eric van Heck, Information Architecture and Electronic Market Performance in Multidimensional Auctions
  • Simon Meij, Louis Pau and Eric van Heck, Auctioning Mobile Messaging, Working paper, Erasmus University Rotterdam, December 2002.
  • Ajit Kambil and Eric van Heck, Making Markets. How Firms Can Design and Profit from Online Auctions and Exchanges Harvard Business School Press, June 2002.