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Computational Economics

, Volume 27, Issue 2–3, pp 395–430 | Cite as

Auctioning Bulk Mobile Messages

  • S. Meij
  • L.-F. Pau
Article

Abstract

The search for enablers of continued growth of SMS traffic, as well as the take-off of the more diversified MMS message contents, open up for enterprises the potential of bulk use of mobile messaging, instead of essentially one-by-one use. In parallel, such enterprises or value added services needing mobile messaging in bulk – for spot use or for use over a prescribed period of time – want to minimize total acquisition costs, from a set of technically approved providers of messaging capacity. This leads naturally to the evaluation of auctioning for bulk SMS or MMS messaging capacity, with the intrinsic advantages therein such as reduction in acquisition costs, allocation efficiency, and optimality. The paper shows, with extensive results as evidence from simulations carried out in the Rotterdam School of Management e-Auction room, how multi-attribute reverse auctions perform for the enterprise-buyer, as well as for the messaging capacity-sellers. We compare 1- and 5-round auctions, to show the learning effect and the benefits thereof to the various parties. The sensitivity will be reported to changes in the enterprise's and the capacity providers utilities and priorities between message attributes (such as price, size, security, and delivery delay). At the organizational level, the paper also considers alternate organizational deployment schemes and properties for an off-line or spot bulk messaging capacity market, subject to technical and regulatory constraints.

Keywords

mobile commerce auctions multi-attribute auctions SMS EMS MMS mobile operators 

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Copyright information

© Springer Science+Business Media, Inc. 2006

Authors and Affiliations

  1. 1.T-9 Rotterdam School of ManagementErasmus UniversityRotterdamNetherlands

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