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The Impact of Electronic Markets on B2B-Relationships

Author

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  • Jochen Haller

    (University of Stuttgart, Germany)

Abstract

Although most of the predicted consequences of the internet-revolution in the 90s did not become reality, the internet has lead to sustainable hanges in the organization of most industries. In particular, this is true for business-to-business (B2B) relations between firm. An obvious `proof' for this is the rising number of so-called electronic markets--- especially for B2B transactions---since several years. This paper should help to give a better understanding of the organizational impacts of electronic markets in the context of B2B relations. Therefore we use the incomplete contract framework to build a simple model of a repeated game. It will be shown that the existence of an (alternative) electronic market could influence the willingness to cooperate between the up- and the downstream firm in a B2B-relationship. In our special case, the willingness to cooperate by the buyer will decline.

Suggested Citation

  • Jochen Haller, 2002. "The Impact of Electronic Markets on B2B-Relationships," Industrial Organization 0204004, University Library of Munich, Germany, revised 05 Feb 2004.
    • Handle: RePEc:wpa:wuwpio:0204004
    Note: Type of Document - Acrobat PDF; prepared on PC; to print on all printers; pages: 16 ; figures: included. Repeated Games;
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    References listed on IDEAS

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    More about this item

    Keywords

    Electronic Markets; Business-to-Business; Industry Structure;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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