Pandora's Box: Does Electronic Commerce Increase the Optimal Amount of Fraud

Michael Welling, Alexander Krebs and Gernot Graefe

No 7762, 99th Seminar, February 8-10, 2006, Bonn, Germany from European Association of Agricultural Economists

Abstract: Close business relationships are important in the food industry. However, the introduction of electronic commerce has emerged as a fundamental challenge to these relationships. In particular, retailers who start procuring private label food products in electronic auctions risk the termination of the relationships with their suppliers thus losing the value derived from these relationships. Instead, they move their focal interest towards single, unrelated transactions. The authors argue that this development increases the optimal amount of fraud in electronic commerce. In this context, they analyze the occurrence of opportunism.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 11
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae99:7762

DOI: 10.22004/ag.econ.7762

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