Introduction to The Economics of E-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace
[The Economics of E-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace]
AbstractDespite the recent misfortunes of many dotcoms, e-commerce will have major and lasting effects on economic activity. But the rise and fall in the valuations of the first wave of e-commerce companies show that vague promises of distant profits are insufficient. Only business models based on sound economic propositions will survive. This book provides professionals, investors, and MBA students the tools they need to evaluate the wide range of actual and potential e-commerce businesses at the microeconomic level. It demonstrates how these tools can be used to assess a variety of existing applications. Advances in web-based technology--particularly automation and delegation technologies such as smart agents, shopping bots, and bidding elves--support the further growth of e-commerce. In addition to enabling consumers to conduct automated comparisons and sellers to access visitors' background information in real time, such software programs can make decisions for individuals, negotiate with other programs, and participate in online markets. Much of e-commerce's economic value arises from this kind of automation, which not only reduces operating costs but adds value by generating new market interactions. This text teaches how to analyze the added value of such applications, considering consumer behavior, pricing strategies, incentives, and other critical factors. It discusses added value in several e-commerce arenas: online shopping, business-to-business e-commerce, application design, online negotiation (one-to-one trading), online auctions (one-to-many trading), and many-to-many electronic exchanges. Combining insights from several years of microeconomic research as well as from game theory and computer science, it stresses the importance of economic engineering in application design as well as the need for business models to take into account the "total game." As the only serious treatment of the microeconomics of e-commerce, this book should be read by anyone seeking e-commerce solutions or planning to work in the field.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
This chapter was published in: Nir Vulkan , , pages , 2003.
This item is provided by Princeton University Press in its series Introductory Chapters with number 7523-1.
Contact details of provider:
Web page: http://press.princeton.edu
business models; profits; investment; technology; online markets; automation; application design; negotiation; engineering; exchange;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kugler, Tamar & Neeman, Zvika & Vulkan, Nir, 2006.
"Markets versus negotiations: An experimental investigation,"
Games and Economic Behavior,
Elsevier, vol. 56(1), pages 121-134, July.
- Tamar Kugler & Zvika Neeman & Nir Vulkan, 2003. "Markets Versus Negotiations: An Experimental Investigation," Discussion Paper Series dp319, The Center for the Study of Rationality, Hebrew University, Jerusalem.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).
If references are entirely missing, you can add them using this form.