Charles C. Poirer

Online reverse auctions are transactions where one buyer and many sellers auction over the Internet, and bids decrease ('reverse') over time. Use of reverse auctions is growing. People are purchasing major printing services, under the false assumption that excess costs in the system are taken out, and that the traditional marketplace is inefficient. The printing industry has seen margins erode significantly over the past few years. Implementing the use of online reverse auctions is, at best, spurring artificial competition. Our data, compiled from two years of bidding online, indicates 50% of winning bidders are, ultimately, not awarded the work. The end result is a negative impact on

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