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The emerging role of electronic marketplaces on the Internet
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Functions of a MarketMarkets (electronic or otherwise) have three main functions, summarized in Table 1: matching buyers and sellers; facilitating the exchange of information, goods, services and payments associated with market transactions; and providing an institutional infrastructure, such as a legal and regulatory framework, that enables the efficient functioning of the market.In a modern economy, the first two functions are provided by intermediaries, while the institutional infrastructure is typically the province of governments.Internet-based electronic marketplaces leverage information technology to perform these functions with increased effectiveness and reduced transaction costs, resulting in more efficient, "friction-free" markets. Matching Buyers and Sellers.Markets "clear" by matching demand and supply.This process of matching buyers' demand with sellers' product offerings has three main components: determining
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“Studies (Bakos, 1998;Chopra & Meindl, 2001;Gurbaxani & Whang, 1991;Shapiro & Varian, 1999) show that larger scope of business demands e-business to reduce costs, to integrate demand and improve inventory management and to benefit from synergy of modern applications and traditional business.”
From Using T-O-E theoretical framework to study the adoption of ERP solution (2016) · cites this paper as Bakos, 1998
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“Prior research shows that search costs decrease in electronic markets due to diminishing cost of data exchange.This, in turn, enables consumers to find offers that meet their needs and tastes (Bakos, 1997(Bakos, , 1998)).”
From Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research (2008) · cites this paper as Bakos, 1998
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“Prior research shows that search costs decrease in electronic markets due to diminishing cost of data exchange.This, in turn, enables consumers to find offers that meet their needs and tastes (Bakos, 1997(Bakos, , 1998)).”
From Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research (2008) · cites this paper as Bakos, 1998
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“Scholars describe SBO as an adoption predicator; the greater the scope of business, the more likelihood enterprises invest to digitalize operations and to reduce internal co-ordination costs, administrative complexities, and information processing (Bakos, 1998;Chopra & Meindl, 2001;Hitt, 1999;Zhu et al., 2003).”
From Using T-O-E theoretical framework to study the adoption of ERP solution (2016) · cites this paper as Bakos, 1998
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“Bakos (1998) noted that electronic markets support personalization and customization through consumer tracking technology to identify individual consumers, infor-92 mation about them, such as demographics, consumer profiles, or comparison with similar consumers.”
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“A price discovery function allows buyers and sellers on the marketplace to determine a transaction price which they both agree on (Bakos, 1998).”
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BackgroundInfluentialElectronic Marketplace: A Distinct Platform for Business-to-Business (B-to-B) Procurement
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“Hence, economic theory suggests that the main benefit of EMs is market efficiency through market aggregation (Malone et al. 1987; Y. Bakos 1991, 1998).”
BackgroundInfluentialJiang, P., Balasubramanian, S. K., & Lambert, Z. V. (2014) · Journal of Consumer Marketing · doi:10.1108/jcm-04-2013-0534 · Cited by 18
Collaboration and the ‘3DayCar’: A Study of Automotive ICT Adoption
Howard, M. B. (2005) · Journal of Information Technology · doi:10.1057/palgrave.jit.2000050 · Cited by 16
“, 2003; Economist, 2004b), the adoption of business-to-business (B2B) systems by firms in less information-intensive manufacturing industries face considerable barriers from institutional hierarchy and other forms of resistance (Bakos, 1998; Hagel, 2002; Howard et al., 2003).”
A Classification Scheme for B2B Exchanges and Implications for Interorganizational eCommerce
Pavlou, P. A., & Sawy, O. A. E. (2002) · IGI Global eBooks · doi:10.4018/978-1-930708-09-9.ch001 · Cited by 16
“Internet-based IOIS can be considered as an extension of traditional EDI-based systems that enable firms to transact without investments in dedicated assets.”
Jones, J. L., & Kœhler, G. J. (2000) · Cited by 16
Giaglis, G. M. (1999) · Communications of the Association for Information Systems · doi:10.17705/1cais.00205 · Cited by 16
“Giaglis new methods of conducting business that were unthinkable only a few years ago; for example, electronic commerce [Kalakota & Whinston, 1996; Bakos, 1998].”
MethodBecoming your own travel agent: a Web of potentials and pitfalls
Anckar, B., & Walden, P. (2005) · Hawaii International Conference on System Sciences (HICSS) · doi:10.1109/hicss.2000.926913 · Cited by 16
Determinants and Performance Outcome of SMEs' Use of Vertical B-to-B e-Marketplaces to Sell Products
Hadaya, P. (2008) · Electronic Markets · doi:10.1080/10196780802265835 · Cited by 15
Experimental Assessment of Agent-Supported Electronic Negotiations
Vahidov, R. M., Chen, E., & Kersten, G. E. (2013) · International Journal of Human-Computer Interaction · doi:10.1080/10447318.2013.777825 · Cited by 15
“The development of electronic markets presents unprecedented opportunities for employing negotiations as one of the key market mechanisms (Bakos, 1998; Chen, Vahidov, & Kersten, 2005; Kersten & Noronha, 1999).”
BackgroundOn the Use of Fuzzy Logic in a Seller Bargaining Game
Kolomvatsos, K., Anagnostopoulos, C. B., & Hadjiefthymiades, S. P. (2008) · IEEE Annual International Computer Software and Applications Conference (COMPSAC) · doi:10.1109/compsac.2008.172 · Cited by 15
“achieve common goals [13].”
Simulation of intermediation using rich cognitive agents
Dignum, V., Tranier, J., & Dignum, F. P. M. (2010) · Simulation Modelling Practice and Theory · doi:10.1016/j.simpat.2010.05.011 · Cited by 15
On models for the operation of a class of electronic marketplaces
Scott, C. H., & Scott, J. E. (2004) · Omega · doi:10.1016/j.omega.2004.02.002 · Cited by 15
Business-to-business electronic marketplaces: evolving business models and competitive landscape
Le, T. T. (2005) · International Journal of Services Technology and Management · doi:10.1504/ijstm.2005.006543 · Cited by 15
“discoveries, handle transactions, and provide an institutional infrastructure (Bakos, 1998).”
BackgroundWeb Service for Knowledge Management in E-Marketplaces
Singh, Iyer, & Salam (2003) · e-Service Journal · doi:10.2979/esj.2003.3.1.32 · Cited by 15
A framework for modeling availability of E-business systems
Kaâniche, M., Kanoun, K., & Rabah, M. (2002) · International Conference on Computer Communications and Networks (ICCCN) · doi:10.1109/icccn.2001.956217 · Cited by 15
“The explosive growth of Internet users has caused a dramatic increase in electronic markets with several categories of business [1, 12, 18]: business-to-business, business-to-customer, customer-to-customer, etc.”
BackgroundKey Issues in E-Government and Public Administration
Joseph, R. C., & Kitlan, D. P. (2008) · IGI Global eBooks · doi:10.4018/978-1-59904-857-4.ch001 · Cited by 15
“Bakos, J. Y. (1998). The emerging role of electronic marketplaces on the internet.”
BackgroundInfluentialIs there a Market for Web Services? - An Analysis of Web Services Directories
Legner, C. (2007) · Alexandria (UniSG) (University of St.Gallen) · Cited by 15
Collaborative Product Representation for Emergent Electronic Marketplace
Guo, J., & Sun, C. (2003) · Journal of the Association for Information Systems · Cited by 15
Evaluation and optimization of the catalog search process of e-procurement platforms
Döring, S., Kießling, W., Preisinger, T., & Fischer, S. (2005) · Electronic Commerce Research and Applications · doi:10.1016/j.elerap.2005.08.004 · Cited by 15
Modelling context in information brokering processes
Klemke, R., & Jarke, M. (2002) · RWTH Publications (RWTH Aachen) · Cited by 15
Li, H., & Jeng, J.-J. (2010) · IEEE International Conference on Collaborative Advances in Software and Computing (CASCON) · doi:10.1145/1923947.1923966 · Cited by 15
Solving combinatorial auctions with temporal constraints in economic agents
Gini, M. L., & Collins, J. E. (2002) · Cited by 15
“Navigating through the digital swamp”: assessing SME propensity for online marketplaces
Gonçalves, M. P. V., Ferreira, F. A. F., Dabić, M., & Ferreira, J. J. (2023) · Review of Managerial Science · doi:10.1007/s11846-023-00704-2 · Cited by 30
“Online marketplaces, in contrast, are multi-player e-commerce channels that, according to Bakos (1998), rely on three main functions: (1) creating a match between buyers and sellers; (2) facilitating transactions; and (3) providing institutional infrastructure.”
Exploring uncertainties in a marketplace for cloud computing: a revelatory case study
Hauff, S., Huntgeburth, J., & Veit, D. J. (2014) · Journal of Business Economics · doi:10.1007/s11573-014-0719-3 · Cited by 14
Electronic Commerce Adoption in Small to Medium Enterprises (SMEs)
MacGregor, R. C., & Vrazalic, L. (2004) · Cited by 15
Metadata
- Authors
- Bakos, Y.
- Affiliations
- New York University (US)
- Corresponding author
- Bakos, Yannis
- ORCID
- Bakos, Yannis
- Venue
- Communications of the ACM
- Published
- 1998-08
- Volume
- 41
- Issue
- 8
- Pages
- 35-42
- ISSN
- 0001-0782 (ISSN-L)
- 1557-7317
- OpenAlex
- W2011896860
- Cited by
- 1,386
- References
- 12
- Citations by year
- 2026: 4 · 2025: 10 · 2024: 11 · 2023: 18 · 2022: 23 · 2021: 24 · 2020: 29 · 2019: 27 · 2018: 23 · 2017: 30 · 2016: 24 · 2015: 49 · 2014: 46 · 2013: 47 · 2012: 54
- FWCI
- 222.08
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- Communications of the ACM (publishedVersion)
- Faculty Digital Archive (New York University Florence) (submittedVersion)
- UCLA - Biblioteca de Ciencias y Tecnologia Felix Morales Bueno (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Business, Management and Accounting › Business and International Management › E-commerce and Technology Innovations
- Social Sciences › Decision Sciences › Management Science and Operations Research › Auction Theory and Applications
- Keywords
- electronic markets, e-commerce, buyer-seller matching, transaction costs, market clearing, intermediaries, institutional infrastructure, frictionless markets, online marketplaces
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