Electronic Trading Networks: The Route to Competitive Advantage?

track the movement of goods. However, electronic trading in this sector raises difficult issues with regard to the international regulation of electronic trading, and logistical problems arising from the need to interconnect network users in different geographical regions. The case studies illustrate the potential to exploit the benefits of linking sec-toral electronic networks. The existing degree of ETN fragmentation may be reduced as network operators gain experience in solving the problems of electronic trading and as a result of more effective policy intervention. Policy Implications Policies for electronic trading need to be formulated to address biases in electronic trading environments that are beginning to become apparent. Policies can be developed to monitor and influence cross-border electronic trading and to ensure that institutions are responsible for the quality of electronic trade-related information as well as the traded goods. Policies can also be devised to ensure that electronic trade operators do not have incentives to relocate their networks within countries where regulatory environments are most advantageous to their objectives. Results of the research on ETNs undertaken at the CICT provide a framework for formulating policies that will be needed to keep pace with the changing structure of electronic trading activities. the social and economic implications of technological change. The following article outlines the advantages and disadvantages of the formation and diffusion of Electronic Trading Networks (ETN). It points to concerns about the potential biases in network design which can lead to limited access for some communities of users. The results of the analysis demonstrate the need to ensure that the regulatory environment keeps abreast of the development of ETN in a way that is effective in influencing their structure and use, especially internationally. The research programme focusses on electronic trading networks (ETN) which combine the collaborative and interactive aspects of electronic trading with the com-capabilities of an ETN may create a competitive advantage for the institution which has designed the network. Network Accessibility Accessibility of an ETN is another important factor that influences electronic trading. The value of the trade-related information that exists in electronic form can be enhanced by its wide diffusion or by its relative scarcity, depending upon the specific circumstances. The analysis shows that ETNs can be designed as either open or closed network systems, but that there is a tendency to form closed trading networks which can enhance the value of trade-related information for the network owners and …