The Internet has enabled consumers to make more informed decisions more conveniently with apparently more efficient price-clearing mechanisms than was available before its advent. One such mechanism is the name-your own-price auction. The authors study the extent to which decisions made in such...

This paper presents an experiment performed to test the properties of an innovative bargaining mechanism (called automated negotiation) used to resolve disputes arising from Internet-based transactions. The main result shows that the settlement rule tends to chill bargaining as it creates...

We show that gravity holds in the case of digital goods that are consumed over the Internet and have no trading costs. Therefore, trade costs, although possibly important, cannot account for the effects of distance on trade. In particular, we show that Americans are more likely to visit websites...

We develop a general parametric modeling framework for bidding behavior in Internet auctions. Toward this end, we incorporate and model simultaneously four key components of the bidding process under our integrated framework: Whether an auction will have a bid at all, (if so) who has bid, when...

In this paper we discuss two propositions: the supply and demand of knowledge, and network externalities. We outline the characteristics that distinguish knowledge- intensive industries from the general run of manufacturing and service businesses. Knowledge intensity and knowledge specialisation...

Compared to business-to-consumer (B2C) e-commerce, business-to-business (B2B) e-commerce is larger, growing faster and has less unequal geographical distribution globally. In this paper, we examine the current stage of B2B e-commerce development across four global regions and propose a model to...

In a successive vertical oligopoly, a set of sellers produce some input to be transformed into a final product by a set of buyers. On this two-sided market, a firm's profit increases with the number of firms of the other type and decreases with the number of firms of its own type. We examine the...