Do electronic marketplaces lower the price of goods?
Communications of the ACM
The emerging role of electronic marketplaces on the Internet
Communications of the ACM
Information technology, contract completeness, and buyer-supplier relationships
ICIS '00 Proceedings of the twenty first international conference on Information systems
Building trust in online auction markets through an economic incentive mechanism
Decision Support Systems
An exploratory study of the emerging role of electronic intermediaries
International Journal of Electronic Commerce
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In many industries, agent-intermediated markets are inefficient because information about latent demand and supply never gets to market. We demonstrate how information technology (IT) 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 increases agent participation and investment thereby increasing demand and supply. Because of tradeoffs between incentives for investment, the EM chooses a profit allocation between agents resulting in limited agent participation. In addition, when price depends on demand and supply balances, price and volume in the market can increase simultaneously.