Impacts of the electronic marketplace on transaction cost and market structure
International Journal of Electronic Commerce - Special section: Diversity in electronic commerce research
International Journal of Electronic Commerce
Transforming the marketspace with all-in-one markets
International Journal of Electronic Commerce - Special issue: Electronic commerce and market transformation
Information exchange in electronic markets: implications for market structures
International Journal of Electronic Commerce - Special issue: Electronic commerce and market transformation
The Impact of E-Commerce on Competition in the Retail Brokerage Industry
Information Systems Research
Economics and Electronic Commerce: Survey and Directions for Research
International Journal of Electronic Commerce
The Complementary Effects of E-Markets on Existing Supplier-Buyer Relationships in a Supply Chain
Journal of Management Information Systems
Information Systems Research
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Market transparency refers to the level of current trade information revealed to participants by market makers. This paper analyzes the effect of market transparency on the outcomes of posted-offer style Business-to-Business e-commerce markets. First, increasing market transparency improves the price-tracking ability of sellers, and results in higher efficiency. However, revelation of quantity information on transactions is not very crucial as opposed to price information. Second, although sellers extract significantly higher surplus profit than buyers can do in a posted-offer market, the difference vanishes with increasing market transparency. Lastly, sellers in posted-offer markets respond poorly to external demand shocks. Interestingly, the poor price-tracking performance of sellers hurts buyers more. In other words, seller profits are much less sensitive to demand shocks as compared to buyer surpluses.