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The Impact of Electronic Markets on B2B-Relationships

  • Jochen Haller

    (University of Stuttgart, Germany)

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.

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File URL: http://econwpa.repec.org/eps/io/papers/0204/0204004.pdf
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Paper provided by EconWPA in its series Industrial Organization with number 0204004.

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Length: 16 pages
Date of creation: 30 Apr 2002
Date of revision: 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;
Contact details of provider: Web page: http://econwpa.repec.org

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