B2b and the Transaction Costs Paradigm
31 Pages Posted: 3 Jul 2001
Date Written: June 26, 2001
Abstract
Business to Business (B2B) causes a significant contraction of transaction costs. According to the Coase paradigm we would thus expect a deverticalization of the industry and broader scope for anonymous market mechanisms. In reality, such expectations are not fully borne out by the facts. When the industrial structure is concentrated the B2B generally loses its independence, and is owned by the firms which most contribute to its development, e.g. the ones able to bring the liquidity to it. The B2B governance mechanism established by these firms gives hierarchical mechanisms a role which they do not usually play in deep, anonymous markets.
Keywords: Transaction costs, vertical integration, electronic commerce, market intermediaries, vertical competition
JEL Classification: D23, L22, L42, L81, L86
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Adverse Selection in Electronic Markets: Evidence from Online Stamp Auctions
By Sanjeev Dewan and Vernon Hsu
-
The Effects of Business-to-Business E-Commerce on Transaction Costs
By Luis Garicano and Steven N. Kaplan
-
The Effects of Business-to-Business E-Commerce on Transaction Costs
By Luis Garicano and Steven N. Kaplan
-
B2b or Not to Be: Does B2b E-Commerce Increase Labour Productivity?
By Irene Bertschek, Helmut Fryges, ...
-
Driving Innovation in Logistics: Case Studies in Distribution Centres
By Claudine A. Soosay and Paul W. Hyland
-
The European Community's Legislation on E-Commerce
By Juergen Noll
-
Technological Innovations in the Indian Logistics Industry: The Case of Freight Handling
By Srinivas Kolluru and Kolluru Krishna
-
Does Resorting to Online Dispute Resolution Promote Agreements ? Experimental Evidence
By Yannick Gabuthy and Nadege Marchand
-
Choosing between Different Forms of B2B Electronic Marketplaces
-
(R)Evolution of the E-Grocery Industry: Strategic Implications