The impact of information systems on organizations and markets
Communications of the ACM
Information assets, technology, and organization
Management Science
Electronic markets and electronic hierarchies
Communications of the ACM
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Journal of Management Information Systems - Special section: Strategic and competitive information systems
A Study of the Value and Impact of B2B E-Commerce: The Case of Web-Based Procurement
International Journal of Electronic Commerce
Business Models for Internet-Based B2B Electronic Markets
International Journal of Electronic Commerce
A Model of Neutral B2B Intermediaries
Journal of Management Information Systems
Network Effects and Technology Licensing with Fixed Fee, Royalty, and Hybrid Contracts
Journal of Management Information Systems
Information Systems Frontiers
The Complementary Effects of E-Markets on Existing Supplier-Buyer Relationships in a Supply Chain
Journal of Management Information Systems
Innovation and Price Competition in a Two-Sided Market
Journal of Management Information Systems
Fostering Networked Business Operations: A Framework for B2B Electronic Intermediary Development
International Journal of Intelligent Information Technologies
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Despite their potential to significantly reduce transaction costs for both buyers and sellers, e-marketplaces have struggled. Recent literature has examined the value propositions of e-marketplaces and proposed conceptual frameworks for their analysis. In this research, we move beyond conceptual analysis by developing a game-theoretic model of return-on-investment (ROI)-driven e-marketplace participation growth. This model provides insights into expected e-marketplace growth and participation, and can be used to determine both the viability and expected long-run size of a given e-marketplace. Our results indicate that the pricing policy of the e-marketplace intermediary can affect the rate at which participation grows and, therefore, sentiment about its prospects. We focus on e-marketplaces that add value to buyers and sellers by increasing the efficiency of administrative tasks but also simultaneously add value to buyers and reduce value to sellers by lowering prices for goods purchased. Value to participants in these e-marketplaces is determined by the volume of transactions that can be conducted using the e-marketplace, resulting in a two-sided network effect--buyers reacting to sellers and sellers reacting to buyers. The game-theoretic model identifies an e-marketplace equilibrium at which participation growth is predicted to stop.