Improvements in the Name-Your-Price Dynamic Pricing Model

The “Name Your Price” model is based on the idea of negotiation which is held via electronic means and has as its main goal equal satisfaction among all parties, namely customer, service provider and supplier. One or more customers using a web platform, which implements this model, can register their orders for a specific product and offer the price they are willing to pay in order to purchase a specific quantity of this product. The advantage of this model is found in the notion of negotiation the service provider has, as it results in low prices due to large wholesale quantities being sold and bought. Using the idea of online negotiation we developed a platform that implements the “Name Your Price” model and at the same time expands the scope of this model proposing a new variant. The new model we propose and the system allows more than one suppliers to cover part of the same order of a specific product. This usually occurs either when the system is not able to find suppliers who could provide the whole ordered quantity, or when none of the suppliers could make a bid that brings significant profit to the service provider. However, this new system is still able to assign an order to only one supplier who will make a profitable bid.