Strategies for Internet Middlemen in the Intermediation/Disintermediation/Reintermediation Cycle

Numerous studies of the interaction between buyers and sellers in a market can be found in the rapidly developing research literature on electronic commerce (EC). This interaction usually takes the form of a transaction process, in which goods or services are exchanged between customers and suppliers. (See Figure 1.) This process may involve none, one or several intermediaries or middlemen, depending on the nature of the goods or services exchanged and other considerations. These intermediaries support the matching of buyers and suppliers, and provide trust to the process (Bakos 1998), essentially assuring that transactions are completed successfully.