Why did the Commonwealth generate 20% more in revenue with the online auction?

Why did the Commonwealth generate 20% more in revenue with the online auction?

On-site inspection was available twice during the 2-week bidding period. The online sale allowed the Commonwealth of Pennsylvania to obtain an average price increase of 20%, while reducing labor costs related to holding a traditional on-site sale.

Which auction format generates the most revenue for the seller?

If values are common rather than independent, the English auction yields higher seller revenue than the second-price, sealed-bid auction, which in turn yields higher revenues than the Dutch and first-price, sealed-bid auctions (which are tied).

What is the purpose of online auction?

Online auctions can be used to sell an excess of items. Additionally, in the case of left-over items after a live or silent auction, an online auction can be used to deal with items that you didn’t have room for or that didn’t sell.

Why are auctions so successful?

Open, Fair, and Transparent Process. The assets for sale are available for all to see. There are no barriers to entry for prospective buyers to overcome. The price of an asset at auction starts low and ends high. Robust competition is encouraged.

How the US state of Pennsylvania sells surplus equipment?

The DGS State Surplus Property Program offers state-owned office furniture, equipment, and supplies for sale to the general public through our distribution center in Harrisburg, special sales held periodically throughout the state or online auctions.

Why is heavy equipment amenable to such auctions?

Buying equipment used at auction allows contractors to stretch equipment budgets by providing a great value on purchases. Auctions give buyers a chance to get quality machinery at less than retail value, meaning that often businesses can land a discount on the equipment they need.

What is the purpose of auctions?

An auction is a sales event wherein potential buyers place competitive bids on assets or services either in an open or closed format. Auctions are popular because buyers and sellers believe they will get a good deal buying or selling assets.

What is the auction theory in economics?

Auction theory is an applied branch of economics which deals with how bidders act in auction markets and researches how the features of auction markets incentivise predictable outcomes. Sellers use auction theory to raise higher revenues while allowing buyers to procure at a lower cost.

What is the value of online auction in e commerce?

It has revolutionized the way people normally buy and has greatly benefited the customer and seller in different ways. Online auctions are one of the websites that have made it more convenient for customers to buy cheap products and have made it easy for sellers to be sellers.

Why online auctions are the best?

Why online auctions are so popular For sellers, it provides access to a greatly expanded pool of potential customers, and the low cost of access makes it easy for individuals as well as businesses to offer goods and services. Most of the survey respondents who participated in online auctions did so only as bidders.

What are the benefits of auctions?

Auction produces fair market value through competitive bidding, allowing you, the buyer, to make a smart buying decision with a seller that is committed to sell. Buyers determine the market value. Auctions provide for a timely purchase and eliminate long negotiation periods.

How does an auction house increase their revenue?

For the Celtic coin category, Yao and Mela calculated that auction houses could increase their revenues by 3.9 percent by offering commission reductions to high-value sellers.

How does the buyer contribute to the auction platform?

Although the buyer does not pay the auction platform directly, the buyer adds some value to the auction platform, Yao notes. That is because, if the buyer did not exist, there would be no one to bid on the seller’s product and the seller would pay no commission.

What happens to auction prices when prices go up?

Prices will be driven up, resulting in higher per-auction commissions for the auction house. In turn, the higher prices paid by buyers and lower competition will encourage the remaining sellers to list some additional items.

How much has the recession cost the States?

The reduction in tax revenues has so far cost states $87 billion, or 11 percent of their revenues. This is the steepest decline since the U.S. Census Bureau began tracking state revenues collections in 1960.