The Impact of Electronic Markets on B2B-Relationships

Jochen Haller ()

Industrial Organization from EconWPA

Abstract: Although most of the predicted consequences of the internet-revolution in the 90s did not become reality, the internet has lead to sustainable hanges in the organization of most industries. In particular, this is true for business-to-business (B2B) relations between firm. An obvious `proof' for this is the rising number of so-called electronic markets--- especially for B2B transactions---since several years. This paper should help to give a better understanding of the organizational impacts of electronic markets in the context of B2B relations. Therefore we use the incomplete contract framework to build a simple model of a repeated game. It will be shown that the existence of an (alternative) electronic market could influence the willingness to cooperate between the up- and the downstream firm in a B2B-relationship. In our special case, the willingness to cooperate by the buyer will decline.

Keywords: Electronic Markets; Business-to-Business; Industry Structure (search for similar items in EconPapers)
JEL-codes: L14 L22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-net
Date: 2002-04-30, Revised 2004-02-05
Note: Type of Document - Acrobat PDF; prepared on PC; to print on all printers; pages: 16 ; figures: included. Repeated Games;

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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpio:0204004

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