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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14766
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| Title: | Information Technology, Competition and Market Transformations:
Re-engineering the Dutch Flower Auctions |
| Authors: | Kambil, Ajit
van Heck, Eric |
| Issue Date: | Jan-1995 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | IS-95-001 |
| Abstract: | The Dutch flower auctions have played a critical role in the world
cut-flower industry by providing efficient centers for price
determination and transactions of flowers between buyers and sellers.
These auctions owned by Dutch cut-flower grower cooperatives have
traditionally used the âÂÂDutch
auctionâ as the mechanism for price
determination. This paper considers how changing patters of
international competition, buyer preferences and information technology
are likely to effect the organization of the Dutch flower auction. We
provide a framework for analyzing the merits of different transaction
models and use this framework to evaluate the strengths and weaknesses
of existing and proposed electronic auction models for trading flowers.
We propose information technology will enable new forms of trading that
will partly replace and supplement the traditional Dutch auction as a
method of organizing price determination and transactions. We identify
how electronic trading will differ from prior mechanisms, and consider
key challenges to the implementation of new auction models.
Specifically we illustrate how the current auctions have been structured
to serve the interests of growers, while electronic markets will
primarily benefit buyers. Thus we highlight the importance of altering
incentive and ownership structures in the Dutch flower industry to
effectively transition to new electronic markets. This case illustrates
the various complex issues that arise in the design and implementation
of electronic markets, in settings characterized by changing
technologies, pre-existing organizational processes and power structures. |
| URI: | http://hdl.handle.net/2451/14766 |
| Appears in Collections: | IOMS: Information Systems Working Papers
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