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In recent years, many new and interesting models of successful onlinebusiness have been developed. Many of these are based on the competitionbetween users, such as online auctions, where the product price is not fixedand tends to rise. Other models, including group-buying, are based oncooperation between users, characterized by a dynamic price of the product thattends to go down. There is not yet a business model in which both sellers andbuyers are grouped in order to negotiate on a specific product or service. Thepresent study investigates a new extension of the group-buying model, calledfair, which allows aggregation of demand and supply for price optimization, ina cooperative manner. Additionally, our system also aggregates products anddestinations for shipping optimization. We introduced the following newrelevant input parameters in order to implement a double-side aggregation: (a)price-quantity curves provided by the seller; (b) waiting time, that is, thelonger buyers wait, the greater discount they get; (c) payment time, whichdetermines if the buyer pays before, during or after receiving the product; (d)the distance between the place where products are available and the place ofshipment, provided in advance by the buyer or dynamically suggested by thesystem. To analyze the proposed model we implemented a system prototype and asimulator that allow to study effects of changing some input parameters. Weanalyzed the dynamic price model in fairs having one single seller and acombination of selected sellers. The results are very encouraging and motivatefurther investigation on this topic.

Fairs for e-commerce: the benefits of aggregating buyers and sellers