Title: Uncertainty, specificity and electronic markets' prospects

Authors: Giorgio Gottardi, Matteo Di Biagi

Addresses: Department of Technology and Management, University of Padova, Stradella S.Nicola n.3, 36100 Vicenza, Italy. Department of Technology and Management, University of Padova, Stradella S.Nicola n.3, 36100 Vicenza, Italy

Abstract: Despite initial enthusiasm, it has become clear that diffusion of electronic markets and promised efficiency gains are slower than predicted. Many important aspects such as the structure, liquidity and transparency of new electronic markets and in particular their effect on competition and prices, are issues still open to discussion. The essential question - whether new ICT-based economic structures will be like electronic spot markets or electronic hierarchies - seems still to be open. This paper analyses in depth, and attempts to classify, the effects of diffusion of internet applications on uncertainty and specificity, the fundamental causes of market inefficiency from a transactional perspective. Several conclusions are drawn on the primary causes that currently seem to be slowing down the predicted ||move to the market|| effect and favour imperfect forms. Transaction coordination solutions which are currently spreading through the web, are indicated.

Keywords: electronic markets; personalised market; regionalised market; uncertainty; specificity; e-market inefficiency.

DOI: 10.1504/IJSTM.2003.003428

International Journal of Services Technology and Management, 2003 Vol.4 No.3, pp.217 - 233

Published online: 07 Sep 2003 *

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