A strategic analysis of electronic marketplaces
MIS Quarterly - Special issue on the strategic use of information systems
Journal of Management Information Systems
Frontiers of electronic commerce
Frontiers of electronic commerce
Do electronic marketplaces lower the price of goods?
Communications of the ACM
Market process reengineering through electronic market systems: opportunities and challenges
Journal of Management Information Systems - Special issue: Information technology and its organizational impact
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
Electronic Commerce Customer Relationship Management: An Assessment of Research
International Journal of Electronic Commerce
Electronic Commerce and Organizational Innovation: Aspects and Opportunities
International Journal of Electronic Commerce
Procurement models in the agricultural supply chain: A case study of online coffee auctions in India
Electronic Commerce Research and Applications
A review of research on e-marketplaces 1997-2008
Decision Support Systems
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Many authors have predicted that electronic commerce will lower the market price of goods. By reducing buyer search costs, they argue, electronic market systems increase price competition among suppliers. As a result, buyers participating in electronic marketplaces should enjoy lower product prices. Contrary to this prediction, the average product price in AUCNET, one of the most successful electronic commerce systems, is much higher than in traditional, nonelectronic markets. AUCNET is an electronic market system for used-car transactions in Japan. The secondhand cars traded in AUCNET are of much higher quality than those sold in traditional markets. This difference between the two markets, which results from new transaction risks created by electronic commerce systems, is an important reason for the higher vehicle prices in AUCNET, but used-car prices in AUCNET are slightly higher than in traditional markets even for cars of similar quality. This article suggests that analysis of the effect of electronic markets on product prices should take account of other economic factors in addition to buyer search costs.