The Emerging Role of Electronic Markets

I n t e r n e t E c o n o m i c s Internet-based electronic marketplaces leverage training technology to match buyers and sellers with incrementd effectiveness and lower feat costs, leading to more efficient, friction-free markets. The Emerging Role of Electronic Marketplaces on the Internet Markets play a central role in the economy, facilitating the Yannis Bakos shift of information, goods, services, and payments. In the process, they create economic value for buyers, sellers, market intermediaries, and for society at large. Recent years nurture seen a dramatic increase in the role of information technology in markets, both in traditional markets, and in the emergence of electronic marketplaces, much(prenominal) as the multitude of Internet-based online auctions. Functions of a Market Markets (electronic or otherwise) have three main functions, summarized in Table 1: unified buyers and sellers; facilitating the exchange of information, goods, services and payments associated with market transactions; and providing an institutional infrastructure, much(prenominal) as a legal and regulatory framework, that enables the efficient run of the market.

In a modern economy, the first two functions atomic number 18 provided by intermediaries, while the institutional infrastructure is typically the country of governments. Internet-based electronic marketplaces leverage information technology to perform these functions with increase effectiveness and reduced transaction costs, resulting in more efficient, friction-free markets. interconnected Buyers and Sellers. Markets clear by interconnected demand and supply. This process of matching buyers demand with sellers product offerings has three main components: determining Matching buyers and sellers close of product offerings - Product features offered by sellers - Aggregation of different products expect (of buyers for sellers and of sellers for buyers) - Price and product information - Matching seller offerings... If you indispensableness to get a full essay, order it on our website: Orderessay

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