Second multitransaction auctioning pilot about to start06 October 2016
What effect does multitransaction auctioning have on an optimal and stable price-setting? That is the objective of the second pilot that starts on October 20 at the plant clocks in Naaldwijk.
In the first pilot, several sales were awarded to buyers within one clock stop at one price. An analysis by the Rotterdam School of Management has revealed that the prices have become more stable as a result. In the second pilot, several sales will be awarded within a period of 40 milliseconds. This means that at most two prices will be possible in one clock stop by the auctioneer. These sales will be awarded if there is sufficient supply available. After this pilot, the Rotterdam School of Management will examine again in the same way what the effect has been on an optimal and stable price-setting.
Delivery times remain the same
We expect that the speed in the second pilot will be about 10% faster than in the first pilot due to a more efficient auction process. The time of auctioning is brought forward, while the delivery time remains the same. To minimise the impact for our buyers - and to generate sufficient data for a representative study - the pilot will run for six weeks. Then we shall return to the procedure in the first pilot or to single-transaction auctioning. You will be kept informed in the coming weeks.
The New Auctioning
To keep the clock up to date, the auction process has to be constantly renewed. This requires both a short-term and a long-term approach. The long-term outlook will be determined by the realisation of The New Auctioning programme within the Royal FloraHolland 2020 strategy. It is essential to start implementing improvements in the clock this year, and Multitransaction Auctioning is one of them.
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