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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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BackgroundThe Impact of Price Anchoring on Consumers' Valuation of Digital GoodsPreprint
Bassellier, G., & Ramaprasad, J. (2018) · SSRN Electronic Journal · doi:10.2139/ssrn.3157629 · Cited by 3
Business-to-Business Exchanges
Tumolo, M. (2001) · Series on resource management · doi:10.1201/9781420000191.ch33 · Cited by 3
Gessler, J., Cencic, M. R., Metzner, C., Wieker, H., Lindow, K., & Schulz, W. H. (2025) · Data in Brief · doi:10.1016/j.dib.2025.111795 · Cited by 3
“In this context, well-defined organizational roles are pivotal in translating governance principles into practical structures, ensuring coherent technical design, and facilitating seamless integration among diverse participants [ 47 , 48 ].”
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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