Online Auctions [10 marks]
Auctions have become a very popular and effective way to buy and sell goods and services on the Internet.
Using an existing online auction site as an example, explain how sample goods for auction on the site may be valued by bidders according to the Value Models introduced in the lecture. [4 marks]
The Revenue Equivalence Theorem assumes the players are risk-neutral. If this assumption breaks and players are risk-averse rather than risk-neutral, it is known that first-price auctions generate more revenue than second-price auctions. Describe why this may occur and illustrate your answer with examples and a diagram. [6 marks]
Many organisations have developed a social business strategy for the digital economy. Discuss how a social business strategy for an organisation in the health sector (i.e. a private health provider) can yield and sustain competitive advantage through co-creation activities along the four (4) areas of co-creation research and practice.
Use specific real-world examples for each of the four (4) areas of co-creation. [3 marks for each area, including examples]
Co-creation has four areas of virtual communities, access commons, collective intelligence, and open innovation.
Privacy in the Digital Economy [15 marks]
As a university student, you provide various types of information about yourself that is stored and used by the institution. This includes demographic data (data about who you are), as well as data related to the courses and programs you study.
Explain how five (5) of the six (6) privacy dangers (i.e. transactional data and personal profiling, individual authentication, the extension of smart products, confidential information, surveillance, and physical security) might occur with this data and/or your interactions with the University. [2 marks for each privacy danger discussed]
The tension between providing personalised services and maintaining ethical behaviour and privacy is a key challenge in the digital economy. In your own words, and using an illustrative example, briefly discuss if you consider that the digital economy has achieved this balance. [5 marks]