Toward an Ethical Understanding of the Controversial Technology of Online Reverse Auctions

Charki, Mohamed Hédi; Josserand, Emmanuel; Charki, Nabila Boukef

doi:10.1007/s10551-010-0532-z

Cited by 26 publications

(24 citation statements)

References 72 publications

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“…In connection with e-RA use, unethical behaviour by participants is also mentioned by researchers [6], [7]. In the construction industry, this phenomenon relates mainly to the submission of abnormally low bids.…”

Section: E-ra Applicability and Related Benefits And Barriersmentioning

confidence: 90%

Electronic Reverse Auctions in Public Construction Procurement – Empirical Evidence from the Czech Republic

Hanák¹

2016

Archives of Civil Engineering

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Electronic reverse auctions (e-RAs) are considered to be an effective tool for negotiating tender prices and achieving cost savings. Furthermore, if multicritera evaluation is used, it can be expected that e-RAs will also contribute to achieving benefits in other areas, e.g. helping to minimize life-cycle costs. This study aims to analyse the mutual relationships between selected e-RA variables. More specifically, correlation analysis is applied to explore real e-RA data representing public tenders for construction work. This study's findings reveal that the correlations examined are generally weak or very weak. Furthermore, it has been found that the value of correlation coefficients varies depending on the type of structure, and that public tenders are usually evaluated solely on the basis of the criterion of the lowest bid price. Recommendations for public authorities in using e-RAs in the role of the buyer are also provided at the end of this paper.

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Section: E-ra Applicability and Related Benefits And Barriersmentioning

confidence: 90%

Electronic Reverse Auctions in Public Construction Procurement – Empirical Evidence from the Czech Republic

Hanák¹

2016

Archives of Civil Engineering

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“…However, some other factors are also important, such as the attractiveness of the demanded volume, the prestige of the buyer, or the ratio of supply and demand. It can generally be stated that the decrease in bid prices is also influenced by the level of competition among the suppliers [11]. The savings gained in this way amount to 5-40 % [12] and the usual overall level of savings is 10-40 % [13].…”

Section: Literature Reviewmentioning

confidence: 99%

“…To evaluate an auction event, one must take into account associated costs and related losses, such as acquisition costs to realize ORA, switching costs, or higher transportation costs. Practical experience shows that including switching costs in the decision-making after the event may be a reason for rejecting the contract from the investor's side, since the buyer can consider that it would be better off keeping its incumbent supplier [11]. The criteria to be used in ORA must include transport costs incurred due to the distance between the supplier and the construction site, as they can sometimes exceed the acquisition price of the product itself.…”

Section: Advantages Of the Applicationmentioning

confidence: 99%

On-line reverse auctions in construction industry

2017

JCE

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The paper examines factors influencing the decision to use, and adoption rate, of online reverse auctions in construction sector. The main factors are identified and comprehensively discussed taking into account particularities of construction industry. The adoption level of this procurement route is examined via a web survey based on a selected sample of construction companies and clients from the Czech construction sector. It was established that online reverse auctions are the most widely used e-procurement tool in the Czech construction sector. Advantages of this procurement procedure are more significantly perceived by investors. Elektroničke reverzne aukcije u građevinarstvu U radu se analiziraju faktori koji utječu na donošenje odluka te brzina uvođenja postupka elektroničke reverzne aukcije u području građevinarstva. Određuju se i detaljno razmatraju osnovni faktori uzimajući u obzir posebnosti građevinskog sektora. Stupanj prihvaćenosti ovog načina nabave ispitan je kroz on line anketu na odabranom uzorku građevinskih tvrtki i naručitelja iz građevinskog sektora u Češkoj. Ustanovljeno je da su elektroničke reverzne aukcije najzastupljeniji način on line nabave u češkom sektoru građevinarstva. Prednosti ovakvog postupka nabave više uočavaju investitori.

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“…Reverse auctions have been characterized as "the technology that has triggered more ethical concerns in the e-commerce arena than in any other segment of activity" [40]. Some observers have specifically criticized reverse auctions as being "coercive" in nature, due to the power being exerted by the buyer to force them to participate in the auctions and to reduce their prices during them [41,42].…”

Section: Coercionor Opportunity?mentioning

confidence: 99%

Current Research On Reverse Auctions:PART II-Implementation Issues Associated With Putting Competitive Bidding To Work

Wyld¹

2011

IJMVSC

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Toward an Ethical Understanding of the Controversial Technology of Online Reverse Auctions

Abstract: case study, narrative, online reverse auctions (ORAs), storytelling, unethical behavior,

Cited by 26 publications

References 72 publications

Electronic Reverse Auctions in Public Construction Procurement – Empirical Evidence from the Czech Republic

Electronic Reverse Auctions in Public Construction Procurement – Empirical Evidence from the Czech Republic

On-line reverse auctions in construction industry

Current Research On Reverse Auctions:PART II-Implementation Issues Associated With Putting Competitive Bidding To Work

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