Internet fraud is an issue that increasingly concerns regulators, consumers, firms, and business ethics researchers. In this article, we examine one common form of internet fraud, the practice of shill bidding (when a seller in an auction enters a bid on his or her own item). The significant incidence of shill bidding on eBay (in spite of the fact that it is illegal just as it is in live auctions) exemplifies the current ineffectiveness of regulatory means as well as (...) the lack of effective societal mechanisms to prevent online fraud. Further, the proliferation of shill bidding along with other types of internet fraud may have broader implications. If unethical behavior such as shill bidding becomes too widespread on the internet, regulators and other societal forces may deem it necessary to institute controls that will impact the entire online marketplace as well as the future development and regulation of business activities on the internet. Our results indicate that shill bidding is perpetrated on eBay significantly more often than 0.1% rate of fraud estimated by the firm. This suggests that regulators, users, and others stakeholders may become concerned enough to act. The impact of those responses on the internet of the future may affect a broad array of users beyond the unethical sellers on eBay. (shrink)

Spirited disagreement exists among online auction participants over the ethics of sniping: delaying one's bid until the closing seconds of an online auction. Through analysis of the structural features of online auctions and by deploying Rawls's (1955) distinction between justifying an action under a practice and justifying the practice itself, I argue that: (i) the disagreement is better conceived as one over the ethics of online auction hosting (and therefore, over business ethics) than over the (...) ethics of online auction participation; (ii) so conceived, the argument against sniping is nonetheless implausible; and (iii) the disagreement remains interesting not on the merits, but for the curious fact that it is bidders who complain about sniping. (shrink)

B2B online reverse auctions technology (ORAs) emerged as a popular tool for large buying firms in the late 1990s. However, its growing use has been accompanied by a corresponding increase in unethical behaviors to a point that it has been described as the technology that has triggered more ethical concerns in the e-commerce arena than in any other segment of activity. Our findings first indicate that the establishment of formal ethical criteria based on the restrictive interpretation of ethics (...) as honesty is not enough to resolve the ethical issues that surround the introduction of a technology because it ignores the ethical values shared by most acton in the sector in terms of fairness. We show the extent to which lobbying, rumor, technical problems, and public discourse can impact on the interpretations of the technology regarding ethics. Highlighting the importance of incorporating ORAs into the broader context of relationship management that integrates ethics as fairness and not only ethics as honesty serves to illustrate why the future of ORAs might not be as bright as predicted by a theoretical interpretation of the technology that is sometimes disconnected from the realities of the field. (shrink)

The increasing number of companies providing internet services and auction tools helped popularize the online reverse auction trend for purchasing commodities and services in the last decade. As a result, a number of owners, both public and private, accepted the online reverse auctions as the bidding technique for their construction projects. Owners, while trying to minimize their costs for construction projects, are also required to address their ethical responsibilities to the shareholders. In the case of online (...) reverse auctions for construction projects, the ethical issues involved in the bidding technique directly reflects on the owner’s ethical and social responsibilities to their shareholders. The goal of this paper is to identify the shareholder ethics and responsibilities in online reverse auctions for construction projects by analyzing the ethical issues for the parties involved in the process. The identification of the ethical issues and responsibilities requires clear definition and understanding of professional ethics and the roles of the involved parties. In this paper, first, the concept of professional ethics and social responsibility is described in a general form. To illustrate the ethical issues and responsibilities, a sample case of bidding for a construction project using online reverse auction techniques is presented in which the shareholders were actively involved in questioning the ethical issues. The issues involved in the bidding process and their reflection on the shareholder responsibilities are described and analyzed for each stage of the process. A brief discussion of the overall process is also included to address the general ethical issues involved in online reverse auctions. (shrink)

Each day, a countless number of items is sold through online auction sites such as eBay and Ricardo. Though abuse is being reported more and more, transactions seem to be relatively hassle free. A possible explanation for this phenomenon is that the sites’ reputation mechanisms prevent opportunistic behavior. To analyze this issue, we first summarize and extend the mechanisms that affect the probability of sale of an item and its price. We then try to replicate the results as found (...) in four recent papers on online auctions. Our analyses reveal that (1) it makes sense to differentiate between ‘power sellers’ and the less regular users, (2) there are variables that have an effect on sales that are often not controlled for, (3) one should carefully consider how reputation is operationalized, ( 4) neglecting heteroscedastidty in the data can have serious consequences, and (5) there is some support indicating that effects differ across auction sites. (shrink)

As use of the Internet has increased, many issues of trust have arisen. Users wonder: will may privacy be protected if I provide information to this Internet vendor? Will my credit card remain secure? Should I trust that this party will deliver the goods? Will the goods be as described? These questions are not merely academic. A recent Boston Consulting Group study revealed that one out of ten consumers have ordered and paid for items online that never were delivered (...) (Williams, 2001). This year consumers filed around 11 000 complaints with the Federal Trade Commission alleging auction fraud, a figure up from the 107 lodged in 1997. It is no wonder that people are increasingly worried about whom to trust in online interactions. This paper explores the conditions under which online trust thrives and looks at examples of best and worst corporate practices. Online trust issues arise in a wide array of forums - chat rooms, news postings, e-catalogues, and retail transactions, to name a few. This paper focuses primarily on the online retail market, but the analysis applies to informational and entertainment sites as well. (shrink)

Games are played everywhere: from economics and online auctions to social interactions, and game theory is about how to play such games in a rational way, and how to maximize their outcomes. This VSI reveals, without mathematical equations, the insights the theory can bring to everything from how to play poker optimally to the sex ratio among bees.

Largely due to the difficulty of observing behavior, empirical business ethics research relies heavily on the scenario methodology. While not disputing the usefulness of the technique, this paper highlights the importance of a careful assessment of the fit between the context of the situation described in the scenario and the knowledge and experience of the respondents. Based on a study of online auctions, we provide evidence that even respondents who have direct knowledge of the situation portrayed in the (...) scenario may develop significantly different assessments of the level of unethical behavior. Further, those assessments may be conditioned in different ways by the same moderating variables. We conclude that care should be exercised when recruiting respondents to choose only those who can be expected to understand the scenario in its true context and that separate analyses should be conducted for groups of respondents who have different perspectives within that context. (shrink)

Largely due to the difficulty of observing behavior, empirical business ethics research relies heavily on the scenario methodology. While not disputing the usefulness of the technique, this paper highlights the importance of a careful assessment of the fit between the context of the situation described in the scenario and the knowledge and experience of the respondents. Based on a study of online auctions, we provide evidence that even respondents who have direct knowledge of the situation portrayed in the (...) scenario may develop significantly different assessments of the level of unethical behavior. Further, those assessments may be conditioned in different ways by the same moderating variables. We conclude that care should be exercised when recruiting respondents to choose only those who can be expected to understand the scenario in its true context and that separate analyses should be conducted for groups of respondents who have different perspectives within that context. (shrink)

You have the camera, or intend to. You have the desire. Now, you have personalized instruction from PC Magazine "The play of light and color on the human imagination." That's how Daniel and Sally Wiener Grotta define photography. They'll lead you through choosing a digital camera and using all its amazing features, but photography is more than technology. These renowned experts liberally share their knowledge of lighting, settings, focus, file formats, communicating with pictures, and more. Read a little, then go (...) shoot some pictures, study them, and read some more. See what you and that camera can do -- together. Go one-on-one with the pros Choose a camera that fits your needs Understand resolution, compression, pixels, and file formats Use shutter speed, lighting, and depth of field Learn about white balance and color adjustment Organize your shots on the camera Shoot photos for company publications or online auctions Pick up tips for getting great photos Get your pictures out of the camera, easily Edit, print, and e-mail photos. (shrink)

Internet services, such as review sites, FAQ sites, online auction sites, online flea markets, and social networking services, are essential to our daily lives. Each Internet service aims to promote information exchange among people who share common interests, activities, or goods. Internet service providers aim to have users of their services actively communicate through their services. Without active interaction, the service falls into disuse. In this study, we consider that an Internet service has a network externality as its (...) main feature, and we model user behavior in the Internet service with network externality as a dynamic game. In particular, we model the diffusion process of users of an ISNE as an infinite-horizon extensive-form game of complete information in which: each user can choose whether or not to use the ISNE in her/his turn and the network effect of the ISNE depends on the history of each player’s actions. We then apply Markov perfect equilibrium to analyze how to increase the number of active users. We derive the necessary and sufficient condition under which the state in which every player is an active user is the unique Markov perfect equilibrium outcome. Moreover, we propose an incentive mechanism that enables the number of active users to increase steadily. (shrink)

У статті визначено основні загрози збереження культурної спадщини країн, що виникають при переміщенні їх культурних цінностей через митний кордон. Обґрунтовано, що для України такими загрозами є: а) відсутність нормативно-правових актів, які б регулювали питання проведення митного контролю за ввезенням культурних цінностей в Україну; б) відсутність системи розрізнення культурних цінностей та предметів культурного призначення; в) неврегульованість у законодавстві принципів ідентифікації культурних цінностей; г) відсутність спеціалізованого органу, який вирішує питання можливості переміщення культурних цінностей через митний кордон країни; д) невідповідність національного свідоцтва на (...) право вивезення культурних цінностей міжнародним стандартам та встановленим відповідним документам; е) відсутність електронного реєстру виданих свідоцтв на право вивезення культурних цінностей з України; є) слабкість та неефективність організації митного та іншого видів контролю за ввезенням культурних цінностей, що сприяє розвитку нелегального ринку культурних цінностей та використання України як транзитної території. Проаналізовано заходи Інтерполу, ЮНЕСКО та Міжнародної ради музеїв щодо боротьби із незаконним обігом культурних цінностей. Здійснено оцінку існуючого порядку переміщення культурних цінностей через митний кордон України та обґрунтовано ймовірні ризики. (shrink)

Environmental scientists and engineers have been exploring research and monitoring applications of robotics, as well as exploring ways of integrating robotics into ecosystems to aid in responses to accelerating environmental, climatic, and biodiversity changes. These emerging applications of robots and other autonomous technologies present novel ethical and practical challenges. Yet, the critical applications of robots for environmental research, engineering, protection and remediation have received next to no attention in the ethics of robotics literature to date. This paper seeks to fill (...) that void, and promote the study of environmental robotics. It provides key resources for further critical examination of the issues environmental robots present by explaining and differentiating the sorts of environmental robotics that exist to date and identifying unique conceptual, ethical, and practical issues they present. (shrink)

Augustine asserted that demons (and angels) have material bodies, while Aquinas denied demonic corporeality, upholding that demons are separated, incorporeal, intelligible substances. Augustine’s conception of demons as composite substances possessing an immaterial soul and an aerial body is insufficient, in Thomas’s view, to account for certain empirical phenomena observed in demoniacs. However, Thomas, while providing more detailed accounts of demonic possession according to his development of Aristotelian psychology, does not avail of this demonic incorporeal eminence when analysing demonic attacks: demonic (...) agency is still confined to the material body. Aquinas’s account of demonic possession need not, on the face of it, require an immaterial cause. In his renouncement of the strong Christian tradition affirming demonic corporeality, Aquinas either conflates the need for a demonic agent with a requirement for a super corporeal one, or subordinates his demonology and angelology to a deeper, more fundamental Dionysian metaphysical principle of creative diffusion to which these adhere in a secondary way. (shrink)

It is often thought that religious experiences provide support for the cumulative case for the existence of the God of classical monotheism. In this paper, I formulate an Evil-god challenge that invites classical monotheists to explain why, based on evidence from religious experience, the belief in an omnipotent, omniscient, omnibenevolent god is significantly more reasonable than the belief in an omnipotent, omniscient, evil god. I demonstrate that religious experiences substantiate the existence of Evil-god more so than they do the existence (...) of Good-god, and, consequently, that the traditional argument from religious experience fails: it should not be included in the cumulative case for the existence of Good-god. (shrink)

We study a dynamic auction mechanism in the context of private provision of a discrete public good under incomplete information. The bidders have private valuations, and the cost of the public good is common knowledge. No bidder is willing to provide the good on her own. We show that a natural application of open ascending auctions in such environments fails dramatically: The probability of provision is zero in any equilibrium. The mechanism effectively auctions off the ‘right’ to be (...) the last one to contribute, but intuition suggests that neither player wishes to be the last one to contribute. Since the player who contributes first has the advantage of being able to free ride on the contributions of the other players, no player wants to ‘win’ the auction. (shrink)

This article explores the possibilities offered by Collins’ model of interaction rituals to an understanding of the emotional dynamics of art auctions. It argues that whilst it explains how the art object becomes the focus of attention, and thus the repository of solidarity and emotional energy, it also obliterates some of the institutional aspects of the auction market that can influence such outcomes. It discusses the need to include an examination of the specific practices of auction houses operating in (...) an international market in their capacity to target specific audiences for their sales. (shrink)

We show that linear logic can serve as an expressive framework in which to model a rich variety of combinatorial auction mechanisms. Due to its resource-sensitive nature, linear logic can easily represent bids in combinatorial auctions in which goods may be sold in multiple units, and we show how it naturally generalises several bidding languages familiar from the literature. Moreover, the winner determination problem, i.e., the problem of computing an allocation of goods to bidders producing a certain amount of (...) revenue for the auctioneer, can be modelled as the problem of finding a proof for a particular linear logic sequent. (shrink)

Do hard budget constraints work in favour or against truth telling in double auctions? McAfee constructed a simple double auction mechanism, which is strategyproof and minimally inefficient, but may resort to dual prices, where the difference between prices is channelled as a surplus to the market maker, preventing MDA from achieving a balanced budget. We construct a variant of MDA in which no-loss constraints play a major positive role. Our variant of MDA is also strategyproof, as efficient as MDA (...) but improves on it by achieving a balanced budget via always having a uniform price. (shrink)

The “fair benefits” approach to international research is designed to produce results that all can agree are fair without taking a stand on divisive questions of justice. But its appealing veneer of collaboration masks ambiguities at both a conceptual and an operational level. An attempt to put it into practice would look a lot like an auction, leaving little reason to think the outcomes will satisfy even minimal conditions of fairness.

This paper has 3 main goals: (1) to clarify the role of Artificial Intelligence (AI)—along with algorithms more broadly—in online radicalization that results in ‘real world violence’; (2) to argue that technological solutions (like better AI) are inadequate proposals for this problem given both technical and social reasons; and (3) to demonstrate that platform companies’ (e.g., Meta, Google) statements of preference for technological solutions functions as a type of propaganda that serves to erase the work of the thousands of (...) human content moderators and conceal the harms they experience. I argue that the proper assessment of these important, related issues must be free of the obfuscation that the ‘better AI’ proposal generates. For this reason, I describe the AI-centric solutions favoured by major platform companies as a type of obfuscating and dehumanizing propaganda. (shrink)

In this paper, we study the auction to allocate an indivisible good when each potential buyer has a private and independent valuation for the item and suffers a negative externality if a competitor acquires it. In that case, the outside option of each buyer is mechanism-dependent, which implies that participation is endogenous. As several works in the literature have shown, the optimal auction entails strong threats to induce full entry and maximal expected revenue. This results from the full commitment assumption, (...) which ensures that threats are credible. We show that absent credible threats, the entry process does not lead to full participation: the equilibrium entails screening of agents in the entry stage and a trade-off between reserve prices and entry fees. Besides, we discuss the conditions under which the impossibility to use threats does not prevent the seller from ensuring a minimal screening and reaching a high expected revenue. (shrink)

The 1994 US spectrum auction is now a paradigmatic case of the successful use of microeconomic theory for policy-making. We use a detailed analysis of it to review standard accounts in philosophy of science of how idealized models are connected to messy reality. We show that in order to understand what made the design of the spectrum auction successful, a new such account is required, and we present it here. Of especial interest is the light this sheds on the issue (...) of progress in economics. In particular, it enables us to get clear on exactly what has been progressing, and on exactly what theory has – and has not – contributed to that. This in turn has important implications for just what it is about economic theory that we should value. (shrink)

We study a first-price auction preceded by a negotiation stage with complete information, during which bidders may form a bidding ring. We prove that in the absence of externalities, the grand cartel forms in equilibrium, allowing ring members to gain the auctioned object for a minimal price. However, identity-dependent externalities may lead to the formation of small rings, as often observed in practice. Potential ring members may condition their participation on high transfer payments as a compensation for their expected externalities (...) if the ring forms. The cartel may therefore profitably exclude these bidders, although risking tougher competition in the auction. We also analyze ring efficiency in the presence of externalities, showing that a ring may prefer sending an inefficient member to the auction, if the efficient member exerts threatening externalities on bidders outside the ring, which in turn leads to a higher winning price. (shrink)

Online Public Shaming is a form of norm enforcement that involves collectively imposing reputational costs on a person for having a certain kind of moral character. OPS actions aim to disqualify her from public discussion and certain normal human relations. We argue that this constitutes an informal collective punishment that it is presumptively wrong to impose on others. OPS functions as a form of ostracism that fails to show equal basic respect to its targets. Additionally, in seeking to mobilise (...) unconstrained collective power with potentially serious punitive consequences, OPS is incompatible with due process values. (shrink)

We are witnessing increasing use of the Internet, particular social media, to criticize (perceived or actual) moral failings and misdemeanors. This phenomenon of so-called ‘online public shaming’ could provide a powerful tool for reinforcing valuable social norms. But it also threatens unwarranted and severe punishments meted out by online mobs. This paper analyses the dangers associated with the informal enforcement of norms, drawing on Locke, but also highlights its promise, drawing on recent discussions of social norms. We then (...) consider two crucial conditions that online public shaming must meet in order to be justifiable: proportionality and accountability. We argue that these requirements are in fact frequently violated, rendering most cases of online public shaming unjustified. While the use of online public shaming against others’ vices has some apparent virtues, it is currently rarely justified, given its own vices. (shrink)

The rise of Internet-mediated communication poses possibilities and challenges for organisation studies, also in the area of corporate social responsibility and business and society interactions. Although social media are attracting more and more attention in this domain, websites also remain an important channel for CSR debate. In this paper, we present an explorative study of activist groups’ online presence via their websites and propose a combination of methods to study both the structural positioning of websites and the meanings in (...) these websites. We focus on the websites of SOMO, the Centre for Research on Multinational Corporations, and of one of its campaigns, makeITfair, concerned with labour conditions in the IT industry worldwide. This allows us to show how this combination of methods can further our understanding of the way activist networks’ online presence can provide insights into the tactics these networks apply to achieve institutional change on CSR issues. Meanwhile, we identify some notable differences between styles and word use in the two organisations’ websites. We conclude with a set of suggestions for future research. (shrink)

The internet provides us with a multitude of ways of interacting with one another. In discussions about how technological innovations impact and shape our interpersonal interactions, there is a tendency to assume that encountering people online is essentially different to encountering people offline. Yet, individuals report feeling a sense of togetherness with one another online that echoes offline descriptions. I consider how we can understand people’s experiences of being together with others online, at least in certain instances, (...) as arising out of their feeling together as a we. Using Walther’s phenomenological framework of communality, I explore whether the following might take place online: habitual communal experiences and actual we-experiences. While neither of these sketches amount to a full account of how we find ourselves with others online, I suggest that they reveal how insights from the phenomenology of sociality can be used to deepen our understanding of online communality. What is more, I suggest that the strength of this approach is that in some cases it allows us to circumvent tricky questions about embodiment online and, in others, prompts us to ask to what extent a fully-embodied interaction is really required for we-experiences. (shrink)

ABSTRACT Understanding is a demanding epistemic state. It involves not just knowledge that things are thus and so, but grasping the reasons why and seeing how things hang together. Understanding, then, typically requires inquiry. Many of our inquiries are conducted online nowadays, with the help of search engines, forums, and social media platforms. In this paper, I explore the idea that online inquiry easily leads to what I will call online illusions of understanding. Both the structure of (...) online information presentation (with hyperlinks, shares, retweets, likes, etc.) and the operation of recommender systems and the like make it easy for people using them to form the impression that they are conducting inquiry responsibly, whereas they are in fact fed with irrelevant information, or, even worse, falsehoods, misinformation, disinformation, or outright conspiracy theories. (shrink)

Ronald Dworkin’s argument for resource egalitarianism has as its centerpiece a thought experiment involving a group of shipwreck survivors washed ashore on an uninhabited island, who decide to divide up all of the resources on the island equally using a competitive auction. Unfortunately, Dworkin misunderstands how the auction mechanism works, and so misinterprets its significance for egalitarian political philosophy. First, he makes it seem as though there is a conceptual connection between the ‘envy-freeness’ standard and the auction, when in fact (...) there is none. Second, he fails to appreciate how idealized the conditions are that must be satisfied in order for his results to obtain. This leads him to draw practical conclusions from the thought experiment that do not follow, such as his claim that the principle of equality generates a presumption in favor of the market as a mechanism for the distribution of resources. The result is that Dworkin saddles resource egalitarianism with a set of commitments that are, in fact, inessential to that view. (shrink)

In this paper we suggest a model of sequential auctions with endogenous participation where each bidder conjectures about the number of participants at each round. Then, after learning his value, each bidder decides whether or not to participate in the auction. In the calculation of his expected value, each bidder uses his conjectures about the number of participants for each possible subgroup. In equilibrium, the conjectured probability is compatible with the probability of staying in the auction. In our model, (...) players face participation costs, bidders may buy as many objects as they wish and they are allowed to drop out at any round. Bidders can drop out at any time, but they cannot come back to the auction. In particular we can determine the number of participants and expected prices in equilibrium. We show that for any bidding strategy, there exists such a probability of staying in the auction. For the case of stochastically independent objects, we show that in equilibrium every bidder who decides to continue submits a bid that is equal to his value at each round. When objects are stochastically identical, we are able to show that expected prices are decreasing. (shrink)

Privacy and surveillance scholars increasingly worry that data collectors can use the information they gather about our behaviors, preferences, interests, incomes, and so on to manipulate us. Yet what it means, exactly, to manipulate someone, and how we might systematically distinguish cases of manipulation from other forms of influence—such as persuasion and coercion—has not been thoroughly enough explored in light of the unprecedented capacities that information technologies and digital media enable. In this paper, we develop a definition of manipulation that (...) addresses these enhanced capacities, investigate how information technologies facilitate manipulative practices, and describe the harms—to individuals and to social institutions—that flow from such practices. -/- We use the term “online manipulation” to highlight the particular class of manipulative practices enabled by a broad range of information technologies. We argue that at its core, manipulation is hidden influence—the covert subversion of another person’s decision-making power. We argue that information technology, for a number of reasons, makes engaging in manipulative practices significantly easier, and it makes the effects of such practices potentially more deeply debilitating. And we argue that by subverting another person’s decision-making power, manipulation undermines his or her autonomy. Given that respect for individual autonomy is a bedrock principle of liberal democracy, the threat of online manipulation is a cause for grave concern. (shrink)

Patients in around 20 countries worldwide are now offered online access to at least some of their medical records. Access includes test results, medication lists, referral information, and/or the very words written by clinicians (so-called ‘open notes’). In this paper, I discuss the possibility of one unintended negative consequence of patient access to their clinical notes—the potential to increase ‘nocebo effects’. A growing body of research shows that nocebo effects arise by engaging perceptual and cognitive processes that influence negative (...) expectancies, and as a consequence, adverse health effects. Studies show that increased awareness about the side effects of medications, the framing of information and the socioemotional context of care can increase the risk of nocebo effects. Connecting research into the nocebo effect with open notes provides preliminary support for the hypothesis that patient access to clinical notes might be a forum for facilitating unwanted nocebo effects. Furthermore, current findings indicate that we might expect to see systematic differences in how nocebo effects are experienced among different patient populations. The ethical implications of the tension between transparency and the potential for harm are discussed, with an emphasis on what open notes might mean for justice and equity in clinical care for a range of already marginalised patient populations. I argue that to resolve these challenges does not thereby justify ‘closed notes’, and conclude with suggestions for how health systems and clinicians might adapt to this innovation to reduce the risk of potential nocebo effects arising via this novel route. (shrink)

The practical importance of auction theory is widely recognized. Indeed, economists have been recognized for their contribution to the design of several auction-like mechanisms, such as the U. S. Federal Communications Commission spectrum auctions, the 3G auctions in Europe and beyond, and the auction markets for electricity markets around the world. This book provides a step-by-step, self-contained treatment of the theory of auctions. The aim is to provide an introductory textbook that will allow students and readers with (...) a calculus background to work through all the basic results. Coverage includes: the basic independent-private-model; the effects of introducing correlation in valuations on equilibrium behaviour and the seller's expected revenue; mechanism design; and the theory of multi-object auctions. The paperback edition of the text includes a new chapter which acts as a guide to current developments in auction theory. (shrink)