ABSTRACT
After Amazon.com, Priceline.com is one of the most recognized names on the Internet. Priceline has pioneered the reverse auction as a new form of e-commerce – customers submit binding bids for products and services (most notably air tickets and hotel reservations) to Priceline, which then shops these bids among sellers to locate a supplier willing to accept
the price and terms set by the customer. The effect is that customers are changed from price-taking buyers into price-setting bidders.
