E-Commerce
C2C Internet Commerce, continued
Docsity.com
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
eBay & Exodus: Case Study on Massive C2C Internet Commerce, Slides of Fundamentals of E-Commerce
An in-depth analysis of ebay's collaboration with exodus communications to ensure website reliability and availability during high traffic periods. The history of exodus, its offerings, and the impact of their partnership on ebay's revenue and stock price. Additionally, the document discusses the importance of auctions in c2c commerce, the concept of strategyproofness, and the sale of monroe photos on ebay with intellectual property rights implications.
Typology: Slides
2012/2013
1 / 13
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download eBay & Exodus: Case Study on Massive C2C Internet Commerce and more Slides Fundamentals of E-Commerce in PDF only on Docsity!
E-Commerce
C2C Internet Commerce, continued
Massive Scale Commercial-Website
Operation
eBay scale:
Approximately 20M users.Over 500K items added each day.
Massive strain on website reliability and
availability.
Major issue for high-traffic B2C sites, too.
EXODUS
- Full Name: Exodus Communications, Inc.• Employees: 600• Stock Price: $16.125 (Feb 19, 2001)• Revenues in 1999: $242,100,000• Business Area: Internet Hosting Service
WHAT EXODUS OFFERS
•^
“Internet Data Center” facilities in majormetropolitan areas
-^
Connectivity to the Internet through a high-speed,high-availability, redundant network infrastructure
-^
Services, including security technologies
-^
Major clients: eBay, Yahoo Geocities, MSN,Lycos, Macromedia, CBS Sports,
etc.
STOCK PRICE CHART
Price
$90 $
Jan 00
Jan 01
Year
$
Jan 99
REVENUE CHART
R e v en u e
1 5 0 M 1 0 0 M
Q u a rte r
2 0 0 M
9 5
9 6
9 7
9 8
9 9
5 0 M
eBay Ascending-Bid Auctions, cont. •^
Technically equivalent to 2
nd
-price Vickrey
•^
Importance of “strategyproofness”:^ – Buyers, like sellers, will have little or no information
about others’ valuations of the items; so “dominant-strategy solution concept” is appropriate.
- “Truth telling is a dominant strategy” helps sellers
maximize revenue.
•^
Seller can choose to use a descending bid structure(“Dutch Auction”).
Auctions for Unlimited-Supply
(Digital) Goods
•^
“Optimal Fixed Pricing” (OFP)
-^
No truthful auction (even multi-price) can beatOFP revenue
-^
“Competitive” =
(OFP revenue)
•^
No truthful, deterministic auction is competitive.
-^
There exists truthful, randomized auctions that are competitive.[Goldberg, Hartline, Wright ’99]
Implications for Internet-Based Business
Intellectual-Property Rights Questions Inescapable
- Butterfield’s auction catalog: Right to use name and likeness for
“trade and advertising purposes”
- CMG Worldwide (which represents Monroe estate): Will go
after anyone who uses “those images in a commercial fashion”
•^
Potential limits to eBay scope^ – Previous sales of high-end photos, prints, and art
have “fallen flat.”
- Can eBay be more than a “hugely successful … online flea
market”?