Although Iran has many advantages in producing flowers and ornamental plants, challenges and inefficiencies such as seasonal price fluctuations, market information deficiencies, inefficient marketing networks, and ultimately, imbalances in supply and demand and high waste dominate the traditional market for these products. This study compares this market with the conditions of the flower auction market. In this regard, cut rose and Isfahan province were selected as the product and study area, respectively. The sample under study included various marketing factors including producers, intermediaries, wholesalers and retailers, whose information was collected during 2008. Also, information related to the flower auction market, due to the lack of such markets for flowers and plants in the country, was simulated based on global experiences gained from the formation of this market and adapting these conditions to the current situation of the domestic market. Finally, the proposed prices of roses in this market were estimated based on the rules of game theory in Dutch auction markets. To compare the two traditional markets and the roses auction, economic and marketing criteria were used, the most important of which were marketing margins and efficiency. The results of the study showed that by transforming the traditional market into a flower auction market, the total profit margin of marketing factors will increase significantly and marketing criteria will be revised. It is expected that the revision of these criteria by designing an auction market for other types of flowers and different parts of the country will bring more benefits. In this regard, investment in auction markets is recommended not only for cut roses but also for all types of flowers by government agencies and the private sector. In this way, Iran will be able to improve its commercial position in the global flower and ornamental plant market.
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