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The Governance of Transactions by Commercial Intermediaries: An Analysis of the Re-engineering of Intermediation by Electronic Commerce

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  • Eric Brousseau

Abstract

Efficiency arguments explain why commercial intermediaries exist and will continue to be involved in the exchanges despite the spread of digital networks. Commercial intermediaries provide producers and consumers with a set of information, logistic, securization and insurance (and liquidity) services. By bundling these services and by dedicating assets and learning capabilities to their production, commercial intermediaries allow transaction costs to be reduced. Digital networks per se cannot allow transacting parties to benefit from such efficient providers of intermediation services. Rather than establishing direct relationships among producers and consumers, the Internet will support a re-organization of existing intermediation chains, because traditional intermediaries will reinforce their ability to provide these service by using ITs. The analysis of the role of commercial intermediaries thus leads to a better understanding of the future of e-commerce. In turn, e-commerce provides New-Institutional Economics with a stimulating case study.

Suggested Citation

  • Eric Brousseau, 2002. "The Governance of Transactions by Commercial Intermediaries: An Analysis of the Re-engineering of Intermediation by Electronic Commerce," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(3), pages 353-374.
  • Handle: RePEc:taf:ijecbs:v:9:y:2002:i:3:p:353-374
    DOI: 10.1080/1357151021000010355
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    References listed on IDEAS

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    Cited by:

    1. P. J. Benghozi & Thomas Paris, 2001. "L'industrie de la musique à l'âge Internet," Post-Print hal-00231011, HAL.
    2. Pierre-Jean Benghozi & Thomas Paris, 2001. "L'industrie de la musique à l'âge Internet," Post-Print hal-00262497, HAL.
    3. Nolden, Colin & Sorrell, Steve & Polzin, Friedemann, 2016. "Catalysing the energy service market: The role of intermediaries," Energy Policy, Elsevier, vol. 98(C), pages 420-430.
    4. Pierre-Jean Benghozi, 2006. "Les communautés virtuelles : structuration sociale ou outil de gestion," Post-Print halshs-00102773, HAL.
    5. repec:dau:papers:123456789/12317 is not listed on IDEAS

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