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Q: priceline's business model ( Answered 5 out of 5 stars,   1 Comment )
Subject: priceline's business model
Category: Business and Money > eCommerce
Asked by: zoewong-ga
List Price: $40.00
Posted: 31 Aug 2003 15:09 PDT
Expires: 30 Sep 2003 15:09 PDT
Question ID: 250865
priceline has its famous "buyer-driven" and "name your own price"
business model. I want to know which other verticals/products will
most likely benefit from similar business model. I have thought of
re-financing, home improvement, apartment rental, vehicles purchase,
computer purchase, and nanny search, but haven't come to any
conclusion. I also don't want to miss any promising verticals.
Subject: Re: priceline's business model
Answered By: jbf777-ga on 31 Aug 2003 19:58 PDT
Rated:5 out of 5 stars
Hello -

This answer is not finished until you're satisfied with it.  If you
choose to rate this answer, please ask for any necessary
clarification/information before doing so.  Thanks for your

Although Priceline has a patent on the concept, the reality is, this
model, frequently called the "reverse auction model," is currently in
use in a number of industries.

The following resources have a listing of industries that are using
the reverse auction concept:

Source Guide

Reverse Auctioneer case studies

As we can see from these sites, everything from aerospace to
agriculture is using this model, at least in business-to-business

The concept can really be applied to a vast number of industries in
business-to-consumer commerce as well.  Service oriented industries

Shipping and packaging 
Technical support
Automobile parts and accessories
Banqueting/special functions
Plumbing, painting, carpeting -- contract work
Medical work
Delivery-oriented work - e.g., flowers, pizza, candy

Many tangibles, or consummables could theoretically work:

Musical instruments
Office equipment

Here are some selected resources on the topic:

"When reverse auctions started off amidst the dot com boom, many
viewed it with scepticism and did not think it would survive for long.
However, contrary to popular expectation, this business has not only
survived the dot com meltdown but has done so in good health. Rajneesh
De, Srikanth RP & Stanley Glancy do some crystal gazing and try to
find out where things go from here" -> see more at URL

Forward Thinking About Reverse Auctions

E-commerce is leading to an anything-goes environment of online
bidding and dynamic pricing

Strategic Sourcing through Reverse Auctions

Priceline: A Net Monopoly No Longer?

White Paper on Reverse Auctions

Attorney for $3 -- Can I get $2?,1283,38582-2,00.html

"Supply Driven vs Demand Driven" Distribution

Search strategy:
  "reverse auctions promise"
  "reverse auctions will"
  "reverse auction" industries"
  "demand driven"
  "reverse auction"
  "reverse auction model"

Thank you,


Request for Answer Clarification by zoewong-ga on 03 Sep 2003 09:33 PDT
Hello jbf777,

Thanks for the answer. Most of the links you provided are B2B reverse
auction while priceline is C2B reverse type. I would like to see more
C2B discussions. "Attorney for $3 -- Can I get $2?" is also a good
site, but the only web site you cited that is dealing with different
industries'/verticals' reverse auction. Are you able to find more
research paper or discussions focusing on B2C reverse auction on
different verticals? Thanks.

Clarification of Answer by jbf777-ga on 03 Sep 2003 10:43 PDT
See different sites using this model with this search term:


Try these other pages:

Name Your Own Price for Surgery

Web shopping shifts into reverse

Reverse Auctions -- Bad Idea?

Car Prices

Holiday shopping [see section on Reverse Auctions],,6321_532261,00.html

Ultimate Coupons

Name Your Own Price

Managing Change brings $10 million to the table

Priceline Case Study

Auctions - the big winner

Optimize Seller Revenue

Priceline and Gas
zoewong-ga rated this answer:5 out of 5 stars
a responsible researcher and great answers. Highly recommended.

Subject: Re: priceline's business model
From: jbf777-ga on 05 Sep 2003 08:23 PDT
Thanks for the rating and kind words!

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