Burt and Coleman Networks in Electronic Intermediation

Two predominant network forms, Burt and Coleman, are delineated to identify the underlying structure and dynamics of electronic intermediation models. Basic differentiating characteristics between the two network types, including nodes, structures, products, transactions, market maturity, and technology improvement, are identified. Two comparative cases are analyzed to illustrate the utility of the constructs. The analysis shows that while both Burt and Coleman networks are viable strategies for electronic intermediation, Burt rents are easier to obtain and difficult to maintain, whereas Coleman rents are more difficult to obtain, but easier to defend. Accordingly, we find a tendency for intermediaries in Burt networks to attempt to affect Coleman rents as a long-term strategy.