Horizontal versus Vertical Electronic Business-to-Business Marketplaces
AbstractThis paper analyzes the behavior of horizontal B2B marketplaces along the supply chain in case a vertical intermediary tries to enter by attracting industry-specific buy-side and sell-side firms. It will be shown that an entrant can only integrate all firms along the vertical production chain in case the industry is strong buy-side dominated. For the remaining scenarios we will determine different levels of integration for buy-side and sell-side dominated branches, in which firms from upper stages will stay at the incumbent. Moreover, we will show that horizontal marketplaces for MRO and other simple goods will be driven out of the market in any case.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40853.
Date of creation: 06 Jul 2006
Date of revision:
intermediation; matching; two-sided markets;
Other versions of this item:
- Marco Henseler, 2006. "Horizontal versus Vertical Electronic Business-to-Business Marketplaces," Discussion paper series from the Institute of Economics and Law, University of Stuttgart 2006/1, University of Stuttgart, Institute of Economics and Law.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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