Market engineering [Elektronische Ressource] : a structured design process for electronic markets / by Dirk G. Neumann

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• Publié par: karlsruher_institut_fur_technologie
• Publié le: 01 janvier 2007
• Nombre de lectures: 18
• Langue: English
• Poids de l'ouvrage: 2 Mo

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Dirk G. Neumann
Market Engineering
A Structured Design Process for Electronic MarketsStudies on eOrganisation and Market Engineering 1
Universität Karlsruhe (TH)
Herausgeber:
Prof. Dr. Christof Weinhardt. Thomas Dreier
Prof. Dr. Rudi StuderMarket Engineering
A Structured Design Process
for Electronic Markets
by
Dirk G. NeumannDissertation, genehmigt von der Fakultät für Wirtschaftswissenschaften
der Universität Fridericiana zu Karlsruhe, 2004
Referenten: Prof. Dr. Christof Weinhardt, Prof. Dr. Siegfried Berninghaus
Impressum
Universitätsverlag Karlsruhe
c/o Universitätsbibliothek
Straße am Forum 2
D-76131 Karlsruhe
www.uvka.de
Dieses Werk ist unter folgender Creative Commons-Lizenz
lizenziert: http://creativecommons.org/licenses/by-nc-nd/2.0/de/
Universitätsverlag Karlsruhe 2007
Print on Demand
ISSN: 1862-8893
ISBN: 978-3-86644-065-4Preface
Electronic markets are increasingly gaining importance in the coordination of goods, services
and financial payments. This trend is still ongoing, though not as visible as it was during the
Internet hype. Markets that heavily rely on the use of electronic media are widespread ranging
from one-shot allocation UMTS licenses, over to frequent inter-organizational coordination
activities in supply networks, to the multi-billion dollar business of stock exchanges. All those
electronic markets inherently need a deliberate design process. For any electronic market it is
essential to define the rules of the game, specifying the transaction possibilities of the market
participants, and to implement them in software. Market Engineering is designated to provid-
ing a structured approach on matching demand and supply against each other, executing the
resulting transactions and finally supporting the technical implementation of real world sys-
tems.

In most of the cases, the design and implementation tasks of market engineering will be as-
sumed by the market organizer, which is not independent in his decision making but fre-
quently influenced by the many stake holders who are interested in different parts of the mar-
ket venue. Among the most common stake holder groups, one can typically identify traders as
customers, regulators and providers of complementary services (e.g. transportation, payment),
each of them having rather different interests. Requirements from those stake holders will
enter the market design depending on the particular role and importance of the stake holders
and thus possibly contribute to a skewed decision making.

Still a fundamental lesson learned from Economics is that the conscious design of electronic
markets is crucial for its working. Even worse, small changes in the design can have a signifi-
cant effect on the results leading to markets that cannot satisfy the requirements of its key
stake holders anymore. Besides these challenges, market engineers are regularly confronted
with the problem of very large design spaces, as the set of commonly considered market pa-
rameters is rather huge. Thus, market engineering requires conscious design.

This insight gave rise to the development of a structured market engineering approach. With
his work Mr. Neumann is focusing exactly on the support of electronic market design. For
this purpose, he developed a market engineering methodology that spawns around two pillars.
The first pillar is a design process that decomposes the holistic design challenge into smaller,
less complex tasks for which solving methods already exist. As such, the second pillar of
market engineering is a toolbox of particular methods. As with all prescriptive design process
models, the market engineering process is a merely a best practice recommendation on how to
proceed, not a law. This recommendation character accounts for the individual needs of the
designers. Creativity is typically not as straightforward, as the design process model would
suggest. Behavioral studies have shown that designers often zigzag on different design levels
leaving the prescriptive design path. Any deviation from the design process model, however,
creates uncertainty concerning the overall design process, resulting in trade-off between crea-
tivity and certainty. Thus, design methods support the designer in this create act of setting up
electronic markets.




iIn this book, Mr. Neumann provides a complete process for electronic markets design to-
gether with the required engineering methods. As such the book is unique applying techniques
from engineering design to modern Information Systems and Economics. Mr. Neumann suc-
ceeds in presenting a generic but coherent approach that is an indispensable aid in designing
markets.
This book is the primer of the series on “Studies on eOrganisation and Market Engineering”
that has been set up at the University of Karlsruhe. It presents a cornerstone in modern e-
market design – many other books will follow along the lines laid out by Mr. Neumann’s
seminal work.
December 2006 Christof Weinhardt
Universitä Karlsuhe (TH)

ii Acknowledgements

This book would not have come into being without the guidance of Professor Dr. Weinhardt.
His visionary power and his untiring dedication are unmatched. His amicable and scientific
support encouraged me to overcome many obstacles.
At this point, I would like to thank Professor Dr. Siegfried Berninghaus, Professor Dr. An-
dreas Geyer-Schulz and Professor Dr. Detlef Seese from the University of Karlsruhe for sup-
porting my work.
I am indebted to the e-negotiation research group around Gregory Kersten and Martin Bichler
for the many fruitful and inspiring discussions at various occasions about auctions and nego-
tiations. This work has also been partially funded by the Social Sciences and Humanities Re-
search Council of Canada (SSHRC) and the Alexander-von-Humboldt foundation within the
scope of the TransCoop program.
Much of the content of this book was inspired by countless discussions with my colleagues of
the Chair for Information Management and Systems at the University of Karlsruhe. The idea
of Market Engineering was initially bred out in collaboration with Carsten Holtmann. It was a
long way from the very beginning in Giessen to the establishment of a graduate school titled
Market Engineering – a way that has passed many crossroads and filling stations.
Particular thanks deserve Daniel Rolli and Henner Gimpel for critical discussions that im-
proved the ideas considerably. In this context, I would also like to thank Ilka Weber for her
support in developing the knowledge system and Stefan Seifert for his critical objections.
Several other colleagues deserve thanks for reading my papers, (never ending) chapters and
sharing ideas. In particular Clemens Czernohous, Juho Mäkiö, Björn Schnizler and Matthias
Kunzelmann are to mention here. Additionally, for paving the way through the administrative
jungle I am indebted to Daniel Veit for his experienced support. I would also like to thank my
current and former colleagues who created a pleasant atmosphere that is prerequisite for as-
siduous work. In this respect, I would like to name Thomas Honekamp and Stefan Strecker.
Lastly, I would like to thank all my friends who do not fit into one of the former groups.
Personally, I would like to thank my parents, Paul and Erika, my brother Kai Uwe and his
wife Agnieszka and my little niece Louisa. I completed this book also because of your en-
couragement, continuous support, enduring patience and love. I dedicate this work to you.

Dirk G. Neumann
Karlsruhe December 11, 2006


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