Strategic factor markets: expectations, luck, and business strategy
Management Science
The emerging role of electronic marketplaces on the Internet
Communications of the ACM
Reducing buyer search costs: implications for electronic marketplaces
Management Science - Special issue: Frontier research on information systems and economics
Information rules: a strategic guide to the network economy
Information rules: a strategic guide to the network economy
Net worth: shaping markets when customers make the rules
Net worth: shaping markets when customers make the rules
Digital Divide?: Civic Engagement, Information Poverty, and the Internet Worldwide
Digital Divide?: Civic Engagement, Information Poverty, and the Internet Worldwide
Virtual Community: Homesteading on the Electronic Frontier
Virtual Community: Homesteading on the Electronic Frontier
The Cluetrain Manifesto: The End of Business as Usual
The Cluetrain Manifesto: The End of Business as Usual
Digital Capital: Harnessing the Power of Business Webs
Digital Capital: Harnessing the Power of Business Webs
Blown to Bits: How the New Economics of Information Transforms Strategy
Blown to Bits: How the New Economics of Information Transforms Strategy
The digital divide: facing a crisis or creating a myth?
The digital divide: facing a crisis or creating a myth?
The Co-Evolution of Strategic Alliances
Organization Science
Communication and Trust in Global Virtual Teams
Organization Science
Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism
Organization Science
Response to Adler, "Market, Hierarchy, and Trust"
Organization Science
Self-organization and new hierarchies in complex evolutionary value networks
Trust in knowledge management and systems in organizations
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
Management Science
Self-organization and new hierarchies in complex evolutionary value networks
Trust in knowledge management and systems in organizations
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There is a considerable amount of literature in management science, which claims that the digital economy is a frictionless economy, where hierarchies and institutions disappear replaced by dynamic and self-organized webs of companies and consumers. This vision may influence the way managers build market strategies and manage organizations, but also the way policy-makers address relevant issues concerned with the so-called digital divide in the knowledge society. In this chapter we have addressed the frictionless vision, challenging the communication symmetry fallacy, on which is based the idea that the network economy is automatically eliminating the information and institutional hierarchies (even though we still believe that the Internet introduces radical changes in the way economic institutions are built and the way businesses are conducted). We provide primary and secondary empirical evidence that does not support the frictionless hypothesis. The complexity of our interconnected world, the evolutionary nature of trust and learning dynamics, and the economics of mediation (the economics of relationships plus the economics of information infrastructure), play a major role in both the creation and reduction of these new hierarchies and transaction costs in digital society. The result is complex and not deterministically driven by network technology.