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The emerging role of electronic marketplaces on the Internet
Open accessAbstract
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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Rival, Y., & Kalika, M. (2014) · Systèmes d information & management · doi:10.3917/sim.091.0075 · Cited by 4
Movahedi, B. M., Lavassani, K. M., & Kumar, V. (2012) · Journal of Electronic Commerce in Organizations · doi:10.4018/jeco.2012010102 · Cited by 4
Intelligent Decision Making and Risk Analysis of B2c E-Commerce Customer Satisfaction
Mohammadian, M. (2015) · International Journal of Fuzzy System Applications · doi:10.4018/ijfsa.2015010104 · Cited by 4
ARE HUBS THE CENTRE OF THINGS? E-PROCUREMENT IN THE AUTOMOTIVE INDUSTRY
Howard, M. B., Vidgen, R. T., Powell, P. L., & Graves, A. (2002) · Journal of the Association for Information Systems · Cited by 4
Kauffman, R. J. (2007) · Hawaii International Conference on System Sciences (HICSS) · doi:10.1109/hicss.2007.326 · Cited by 4
“In the past ten to fifteen years, we have seen the rise of theorybased research on information goods, digital music and movies [31, 36, 46], information goods bundling [14], interorganizational information systems [118, 129], electronic markets [10, 11], digital intermediation [37, 38, 39], electronic auction design […”
BackgroundExploration costs as a means for improving performance in multiagent systems
Sarne, D., & Aumann, Y. (2014) · Annals of Mathematics and Artificial Intelligence · doi:10.1007/s10472-014-9435-5 · Cited by 4
“The lowered search cost is associated in this case with increased economic efficiency and an enabler for new markets to emerge [6].”
BackgroundFROM MASS CUSTOMIZATION TO CUSTOMIZATION: AN OPPORTUNITY FOR ENTREPRENEURIAL DIFFERENTIATION
Aurand, T. W., DeMoranville, C. W., Fredericks, E., & Smith, T. J. (2004) · Journal of Small Business Strategy · Cited by 4
Zhu, K. X. (2004) · Hawaii International Conference on System Sciences (HICSS) · doi:10.1109/hicss.2004.1265498 · Cited by 4
“The sequence of events occurs as follows: (1) each firm decides whether or not to join the B2B exchange with an understanding that the B2B exchange will make signals regarding its cost data visible to other exchange members; (2) with its own cost data endowed initially, each firm may access additional information abou…”
Influential
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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