Electronic markets are not just evolving they are designed. As such providing electronic trading venues is an entrepreneurial activity. The institutional approach followed here introduces a market operator as an economic player. As the entrepreneur charges fees for his service of operating an electronic market, the transaction cost savings incurred by information technology are essentially full...

will compete. On the contrary, their integration would resu!t in a big monopoly. Similarly, electronic markets would emerge in several places simultaneously and initially be unwilling to merge. Only as competitive pressure inceases they would integrate horizontally, probably forming a national market. Thus, I agree with Schmid that electronic markets are (or better, can be) open systems technol...

In many industries agent-intermediated markets are inefficient because information about latent demand and supply never gets to market. We demonstrate how information technology in the form of an agent-intermediated electronic market (EM) alleviates this problem by enhancing the agent-as-market-maker using the international freight transportation industry as an example. We find that an EM incre...

The electronic markets hypothesis holds that information technology use influences the dismantling of vertical firm boundaries because of reductions in the cost of transactions between firms. Anecdotal evidence of merger and alliance activity for information goods producing firms seems to be at odds with these predictions of an IT-driven rise in vertical market coordination structures. An inter...

Until recently, electronic markets were dominated by the combination of static offer schemes and fixed pricing. Static offer schemes such as online catalogues apparently bear the risk of not matching the requirements of all potential buyers. But fixing a price also imposes another risk to the seller the price might not always reflect the current market balance of supply and demand and the speci...

This paper examines the value drivers and e-business infrastructures for collaborative commerce across two distinct types of business-to-business governance arrangements in Financial Services, i.e., (a) electronic markets and (b) electronic networks. This paper addresses the changing dynamics underlying global trading communities as they evolve towards greater reach and range of services for th...

The article discusses the issues of conducting transactions for agricultural products via the Internet between businesses. In particular, it is dedicated to the so-called electronic agricultural commodity marketplaces that are virtual meeting places of buyers and sellers of agricultural commodities. The purpose of this article is an indication of the changes taking place in the agricultural mar...

In this paper we develop a framework for the ownership structures of electronic markets and contrast different alternatives by using a case study in the automotive industry. Focus is General Motors’ decision to join the industry electronic market place Covisint and Volkswagen’s decision to build an individual solution. Building on multiple theories from inter-organizational relationship formati...