Abstract
This paper studies the impact of a Business-to-Business electronic market on an environment where manufacturers used fixed-term contracts to purchase materials from suppliers. We focus on the effects of private information and consider the interaction between fixed-term contracting and the electronic market. We study the effects of the electronic market on the participants using four factors: changes in industry structure, information effects, volatility and price flexibility. We find that the effects of Business-to-Business electronic markets on industry performance are subtle, and that it can make the supply chain as a whole less profitable, with the benefits accruing largely to consumers.
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Mendelson, H., Tunca, T.I. (2007). Business-To-Business Electronic Markets: Does Trading on New Information Create Value, and for Whom?. In: Apte, U., Karmarkar, U. (eds) Managing in the Information Economy. Annals of Information Systems, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-36892-4_9
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DOI: https://doi.org/10.1007/978-0-387-36892-4_9
Publisher Name: Springer, Boston, MA
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