Negotiation can be regarded as playing a game with certain rules. If the rules change, the game has to be played differently. Compared to traditional markets, electronic markets can have fundamentally different characteristics such as cost structure or the level of transparency. These differences have already stimulated the tremendous success of one breed of electronic market negotiations: auct...

Several authors have argued that because modern computing and communications technologies reduce buyer search costs and other market inefficiencies, there should be intense price competition between sellers in electronic markets. This paper examines this prediction using data on the airline ticket offerings of online travel agents (OTA). We find that different OTAs offer tickets with substantia...

legal actions remains sufficiently predictable. Such predictions on legal conflicts have to be shared among economic actors to stabilize mutual expectations of behavior. This stability then helps to reduce legal risks. Predictability is not necessarily related to precise legal knowledge. It is sufficient to know when legal specialists have to get involved. Economic actors prepare for such situa...

Entrepreneurs in electronic markets move in industries where a strong corporate brand can deliver competitive advantage through differentiation. It not only facilitates increased attention. Despite ever-increasing followers and me-too products, it enables a company to build a positive image on behalf of the relevant target groups – be they consumers/customers, shareholders, employees, or indust...

Enterprises face stiff competition and the pressure to improve efficiency and productivity. Since the cost of production could be reduced in the last years, further reductions can be obtained e.g. by spreading production processes over organizational boundaries to use the key competencies of the involved organizations. This shift increases the number of external links and transactions of enterp...

Newcomers to electronic markets are forced to accumulate customers as rapidly as possible. One strategy to fulfil this aim is so called viral marketing, which seems an appropriate term for describing the pattern in which Internet companies spread by making use of customer referrals. The aim of this article is to describe and explain common features of viral marketing strategies and to outline c...

Electronic markets are not just evolving they are designed. As such providing electronic trading venues is an entrepreneurial activity. The institutional approach followed here introduces a market operator as an economic player. As the entrepreneur charges fees for his service of operating an electronic market, the transaction cost savings incurred by information technology are essentially full...

This paper places non-monetary trade (NMT), a persistent growth of which in Russia in 1992-8 economists have struggled to explain, within the framework of the credit channel of the monetary policy. It shows that producers resorted to NMT responding to increases in the cost and unavailability of external funds. The paper traces the origin of structural breaks in the NMT trend and its transitory ...

The directed search model (Peters, 1984) is static; its dynamic extensions typically restrict strategies, often assuming price or match commitments. We lift such restrictions to study equilibrium when search can be directed over time, without constraints and at no cost. In equilibrium trade frictions arise endogenously, and price commitments, if they do exist, are self-enforcing. In contrast to...

The general conclusion of the empirical literature is that in-market consolidation generates adverse price changes, harming consumers. Previous studies, however, look only at the short-run pricing impact of consolidation, ignoring all effects that take longer to materialize. Using a database that includes detailed information on the deposit rates of individual banks in local markets for differe...