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TIME BASED REVERSE AUCTION USING PENNY BIDING ALGORITHM
Manikiran Kodam
1, Saurabh More
2, Abhilesh Patil
3, Sonal Maskeen
41,2,3
BE-CMPN ( Pursuing ) ,
4Project Guide,Department of Computer Engineering Atharva College of Engineering, Malad (W), Mumbai (India)
ABSTRACT
We are going to create a website which will provide transporting services. Individuals and businesses display items they need shipped in a variety of categories, including auto transport, home and office moving services and the transport of heavy industrial equipment. This bidding system will be on time based reverse auction system. In this way you can save your time and money because the transporters are competing against each other. You can select your winning bid at any time by checking the bidding amount and other customers feedback. Only the company that you will select will get your information like name, address, phone no. etc , so that your privacy will be protected and there will be no annoying unknown calls. Once the delivery is over, we will request both the transporter and the client to give us the feedback on our website. The site's reverse auction format aims to reduce the cost of shipping by enabling service providers to find shipments along their routes and fill empty space. This website will be beneficial for both the transporters and customers. Transporters will get connected to the global market around and the customers will save their time & money by paying the amount that they can afford. Reverse auctions are the auctions where the bidder is the seller and not the buyer.
The bid shows how much the buyer is being asked to pay.
Web-based reverse auctions have become extremely popular for purchasing large amount of goods or services at the corporate level. E-procurement is most often used to describe those business to business revere auctions.
Before the internet age they were also called Request For Proposal or Request For Quote .Against popular belief, the lowest bid is not always the winner. It would be if all sellers where offering the same exact items and the buyer could consider all offer absolutely similar. In the real world, most bids will be slightly different and will always have something specific attached to them. The simple fact that the seller is different and carry its own reputation will suffice to make a higher bid wins against a similar offer made by a less reputable seller.
Keywords: Auction, Bid, Algorithm And Reverse
I. INTRODUCTION
Auction is a process of buying and selling of goods and products first hand or second hand using bids or taking bids and selling to the highest bidder. It may also be referred to as mechanism or set of rules used for trading.
Online Auction is the auction held over internet. It is a new concept in E-commerce which is developed over last two decades. Online auctions were taking place even before the release of the first web browser for personal
2 | P a g e computers, NCSA Mosaic. Instead of users selling items through the Web they were instead trading through text-based newsgroups and email discussion lists. However, the first Web-based commercial activity regarding online auctions that made significant sales began in May 1995 with the company onsale. In September that same year ebay also began trading.' Both of these companies used ascending bid. The Web offered new advantages such as the use of automated bids via electronic forms a search engine to be able to quickly find items and the ability to allow users to view items by categories.
Online auctions have greatly increased the variety of goods and services that can be bought and sold using auction mechanisms along with expanding the possibilities for the ways auctions can be conducted and in general created new uses for auctions. In the current web environment there are hundreds if not thousands of websites dedicated to online auction practices.
II . TYPES OF ONLINE AUCTIONS
2.1 English Auction
Type of forward auction, in which usually a single item is offered for sale. Bidding starts with a low price, and is raised incrementally as progressively higher bids are solicited, until either the auction is closed or no higher bids are received. Often the seller sets a reserve price below which the item is not sold and the auction is aborted. Perhaps the most common form of auction, it allows a seller to secure the highest price for an item [1]
[4] [5].
2.2 Dutch Auction
A Dutch auction is a method for pricing shares whereby the price of the SHARES offered is lowered until there are enough bids to sell all shares. All the shares are then sold at that price. [1] [4] [5].
2.3 Vickrey Auction
Type of sealed bid auction where the successful buyer or seller pays only the second-best price.
This mechanism serves as an incentive for the potential buyer to offer a value that is the true value of the item in his or her judgment. Invented by the Canadian Nobel-laureate economist William Vickrey Also called second bid auction or second price auction. [1] [4][5].
2.4 Reverse Auction
Type of auction in which several sellers offer their items for bidding, and compete for the price which a buyer will accept. The buyer usually has the option to accept any bid or reject all. Bid- based construction or supply contracts are examples of reverse auction. Also called business to consumer auction. [1] [4] [5].
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2.5 Bidding Fee Auction
In this type of auction bidder pays for every bid he is placing. The bidder is liable to lose money even if won’t win any product. There has been criticism that compares this type of auction to gambling, as users can spend a considerable amount of money without receiving anything in return. The auction owner makes money in two ways, the purchasing of bids and the actual amount made from the final cost of the item. [1] [4] [5].
2.6 First Sealed Price Auction
In this type of auction bidder places only one bid and the highest bidder wins the auction. It is different from English auction because bids are closed in First Sealed price auction and open in English auction, and similar to Dutch auction in strategizing. [1] [4] [5].
III . PENNY BIDDING ALGORITHM
t = tstart {Set auction clock to its starting value}h = −1 {Currently there is no winner}
ph = 0 {Start the current offer at 0}
while t > 0 do for all Bidders bi do
if i != h and hitBidButton(bi) then h = i {Make bi the current highest bidder}
charge(bi, cbid) {Charge bi the bid cost}
ph = ph + cinc {Increment the offer}
t = max(t, treset) {Set the auction clock back to the reset time } sendItem(bh) {Last bidder wins item}
charge(bh, ph) {Winner pays item price}[2].
In Penny bidding algorithm there is a clock which indicates the time remaining before the auction ends. At any point of time there is only one highest bidder. The timer flows in reverse direction towards zero. Here the bidder is not allowed to specify the amount, however he is allowed to press bid button. When the bidder presses the bid button 3 events occur:
• The bidder becomes the new highest bidder in the auction, with an offer which is only a small, set increment (which we will call the bid increment) above the previous offer.
• The bidder is charged a set price (which we will call the bid cost) – usually between $0.50 and $1.00.
• If the auction clock is below a certain time known as the reset time (usually under a minute), the clock is set back to the reset time (guaranteeing that bidders have time to respond to any bid).
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IV .BASIC ARCHITECTURE OF AUCTION INTERFACE
Fig 1:ARCHITECTURE OF AUCTION INTERFACE [3]
4.1 Auction Information Server
It is used to authenticate the client.
It provides all the necessary information regarding the auction to the remote client
4.2 Auction Server
Auction server is the actual place where auction takes place.
It can be viewed as collection of agents.
4.3 Client
There are two types of agents:
o Auctioneer agent.
o Bidder agents.
V. DETAILED DESCRIPTION OF MODULES
5.1 Customer:
• User Information (customers, transporters)
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• Modify Information
• Bids
• Notifications
• Request For Shipping
•
5.2 Administrator:
• Delete products
• Delete user
• This involves functions like sign up, login, user profile.
• The user will have access to his bids.
• He can modify any information related to him.
•
5.3 Search
• Customer will search for the beneficial service.
•
5.4 Bids:
• The site's reverse auction format aims to reduce the cost of shipping by enabling service providers to find shipments along their routes.
VI . DATABASE STRUCTURE
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VII . ADVANTAGES
No schedule constraints.
Limited or no auction house fees.
Ability to bid on items on a global level.
No noisy crowds.
No rude bidders.
VIII . CONCLUSIONS
In this paper we have reviewed area of online auctions. As it is quite clear that now as marketplace is shifting from physical to online. So there is lot of scope of research with challenges like price determination or efficient bidding system etc. Here we studied various techniques like clustering, k means etc. for determining the price of online auctions. There are certain factors like product, presentation, reputation, process of selling that have impact on final price of online auctions. The data collection sources i.e. physical & online automated have been discussed here. And in last the performance of bidding as a process has been discussed. After having a comprehensive review it can be concluded that there is scope of improvement in the process of online auction, this improvement can be in terms of either the predictive price analysis or in terms of the performance of web services offered here.
IX .ACKNOWLEDGEMENT
We are thankful to Prof. Sonal Maskeen for her guidance and support.
REFERENCES
[1]. Pricing Algorithms in Online Auctions , Sandeep Kumar, Computer Engineering Department, UIET,M.D.
University Rohtak, Haryana, India
[2]. Designing a Bidding Algorithm for Online Penny Auctions, Je_rey Stix,Dept. of Computer Science, Brown University, [email protected]
[3]. Design of Real Time Auction System , Hemantha Kumar P., Gautam Barua, Dept. of Computer Science and Engineering,Guwahati 781093
[4] Bapna, R., Goes, P., & Gupta, A. Insights and analyses of online auctions. Communications of the ACM, 44(11), 42-50, 2001.
[5] Lucking‐Reiley, D. Auctions on the Internet: What‟s being auctioned, and how? The Journal of Industrial Economics, 48(3), 227-252, 2000.
