Bidder Types and their impact on the Dutch Flower Auctions
Speaker
Abstract
| The Dutch Flower Auctions (DFA) plays an important role in maintaining the Netherlands’s leadership in the floriculture industry; they serve as efficient centers for exchange of flower products between suppliers and buyers, and operate about 60% of the world’s flower trade. Due to the limited availability of proprietary data, there are few empirical studies investigating the auction mechanism as well as the bidding strategies employed by the bidders in the DFA. |
| In this study, we develop an empirically driven taxonomy of bidder behavior and conduct a fine-grained analysis of different bidding strategies. Our findings and analysis provide tantalizing possibilities for auctioneers to strategically target certain buyer populations and set auctioneering parameters such as the starting price, minimum quantity and reserve price for each auction to maximize revenue and throughput. |
| This work is done in collaboration with Alok Gupta (U of Minnesota), Wolf Ketter (RSM) and Eric van Heck (RSM). |
| Contact information: |
| Dr. Wolf Ketter |
