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An awareness-based meta-mechanism for e-commerce buyer coalitions

Author

Listed:
  • Laor Boongasame

    (Bangkok University)

  • Farhad Daneshgar

    (Australia and Bangkok University
    University of New South Wales)

Abstract

Many of the existing theories in e-Commerce and Buyer Coalition assume that all persons involved adopt self-interested strategies by seeking their own gains using environmental/market information. In reality however, such information may not be complete. Also, each person’s knowledge may differ from others. By adopting a collaborative perspective towards the buyer coalition process, this study introduces and validates an awareness-based mechanism for buyer coalitions that generates various outcomes corresponding to different levels of awareness of the collaborating roles within the process, where ‘awareness’ is defined in terms of the knowledge of the collaboration context of the coalition. The theoretical foundation of the study is an overlapping space of Game Theory (Hassan et al. Information Systems Frontiers 16(4):523–542, 2014), e-Commerce (Yang et al. Information Systems Frontiers 16(1):7–18, 2014), and Knowledge Management (Daneshgar & Wang Knowledge Based Systems 20(8):736–744, 2007). The research methodology is design science using simulation software for demonstration and proof of concept. Results indicate that higher levels of awareness of buyers do not necessarily increase total coalition discount but it enables individual buyers to make more opportunistic and calculated decisions to protect their personal interests.

Suggested Citation

  • Laor Boongasame & Farhad Daneshgar, 2016. "An awareness-based meta-mechanism for e-commerce buyer coalitions," Information Systems Frontiers, Springer, vol. 18(3), pages 529-540, June.
    • Handle: RePEc:spr:infosf:v:18:y:2016:i:3:d:10.1007_s10796-014-9541-2
    DOI: 10.1007/s10796-014-9541-2
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    References listed on IDEAS

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    1. Nisan, Noam & Ronen, Amir, 2001. "Algorithmic Mechanism Design," Games and Economic Behavior, Elsevier, vol. 35(1-2), pages 166-196, April.
    2. Joan E. van Aken, 2004. "Management Research Based on the Paradigm of the Design Sciences: The Quest for Field‐Tested and Grounded Technological Rules," Journal of Management Studies, Wiley Blackwell, vol. 41(2), pages 219-246, March.
    3. Laor Boongasame & Farhad Daneshgar, 2013. "A collaborative platform for buyer coalition: Introducing the Awareness-based Buyer Coalition (ABC) system," Information Systems Frontiers, Springer, vol. 15(1), pages 89-98, March.
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