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 of Stuttgart, Institute of Economics and Law in its series Discussion paper series from the Institute of Economics and Law, University of Stuttgart with number 2006/1.
Length: 19 pages
Date of creation: 06 Jul 2006
Date of revision:
intermediation; matching; two-sided markets;
Other versions of this item:
- Henseler, Marco, 2006. "Horizontal versus Vertical Electronic Business-to-Business Marketplaces," MPRA Paper 40853, University Library of Munich, Germany.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-12 (All new papers)
- NEP-COM-2006-08-12 (Industrial Competition)
- NEP-MIC-2006-08-12 (Microeconomics)
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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