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Information Systems and e-Business Management

, Volume 1, Issue 2, pp 213–228 | Cite as

A comparative study of exchange and aggregation models in the B2B e-marketplace

  • Hsin-Lu Chang
  • Robert F. Easley
  • Michael J. Shaw
Article

Abstract

This research seeks to provide an economic framework for understanding two major forms of e-marketplaces: aggregation-oriented vs. exchange-oriented e-marketplaces. By analyzing the marginal benefit per transaction in alternative models, we are able to determine the most suitable B2B e-marketplace for a wide variety of product categories, market conditions, and procurement methods. For example, when companies sell commodities in a fragmented market, the aggregation model is suitable for spot purchasing, and the exchange model works best for systematic purchasing. In addition, the effect of supplier consolidation and information technology-enabled cost reduction on model selection is discussed.

Key words

supply chain management electronic marketplace market channel selection demand aggregation B2B exchange 

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Copyright information

© Springer-Verlag 2003

Authors and Affiliations

  • Hsin-Lu Chang
    • 1
  • Robert F. Easley
    • 2
  • Michael J. Shaw
    • 1
  1. 1.Department of Business AdministrationUniversity of Illinois at urbana-ChampaignChampaignUSA
  2. 2.University of Notre Dame, 311 Mendoza College of BusinessNotre DameUSA

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