Duopolistic Competition between Independent and Collaborative Business-to-Business Marketplaces

This paper studies imperfect price competition between two intermediaries in an electronic business-to-business matching market with indirect network externalities. The intermediaries differ with regard to their ownership structure: an independent third party incumbent marketplace competeswith a challenging collaborative buy-side consortium marketplace in terms of attracting buying and selling firms. When firms can register exclusively with at most one intermediary, the incumbent is only able to deter entry if the number of firms taking ownership in the consortium is sufficiently small. Otherwise, the consortium can successfully enter and monopolize the market. When firms can multi-home, i.e. they register simultaneously with both intermediaries, the consortium can always enter while both intermediaries stay in the market with positive profits.B2B e-commerce, intermediation, network externalities, matching.

Duopolistic Competition between Independent and Collaborative Business-to-Business Marketplaces

This paper studies imperfect price competition between two intermediaries in an electronic business-to-business matching market with indirect network externalities. The intermediaries differ with regard to their ownership structure: an independent third party incumbent marketplace competes with a challenging collaborative buy-side consortium marketplace in terms of attracting buying and selling firms. When firms can register exclusively with at most one intermediary, the incumbent is only able to deter entry if the number of firms taking ownership in the consortium is sufficiently small. Otherwise, the consortium can successfully enter and monopolize the market. When firms can multihome, i.e. they register simultaneously with both intermediaries, the consortium can always enter while both intermediaries stay in the market with positive profits. --B2B e-commerce,intermediation,network externalities,matching

Learning about demand abroad from wholesalers: a B2B analysis. NBB Working Paper No 377, November 2019

This paper uses Business to Business (B2B) transaction level data. It shows that manufacturing firms that initially export via a wholesaler are much more likely to become direct exporters to the same destination in subsequent periods. Theoretically, we rationalise this finding by demonstrating how a connection to a wholesaler reduces uncertainty about the foreign demand. In the data we isolate the channel for demand learning from productivity spillovers. Non-exporting manufacturing firms, previously serving a foreign destination through an exporting wholesaler, have a much higher probability of becoming direct exporters to the same export market in subsequent periods. A connection to an exporting wholesaler results in a probability of exporting to the same destination that is six times higher than a comparable firm without any exposure to the foreign destination

An Empirical Analysis of the Determinants of Success of Food and Agribusiness E-Commerce Firms

E-commerce's value creation in agricultural and food markets will only occur to the extent that e-commerce firms exist throughout the supply chain. The problem is that e-commerce firms throughout the agricultural and food supply chain have faced a serious challenge in staying in business. Many have been forced to exit the market, and only a few have survived to develop into functional web-based businesses. The objective of this research study is to identify characteristics that are associated with successful e-commerce firms throughout the agricultural and food supply chain. Relevant e-commerce and agricultural e-commerce literature suggests several characteristics that influence the success for agricultural and food e-commerce firms. A limited-dependent variable technique, logistic regression, is used to relate websites' characteristics to their probability of survival.e-commerce, food chains, survival probability, logistical regression, Agribusiness,

E-Markets and Changing Trends

This paper discusses the role of e-markets as intermediaries in the Australasian B2B e-space. The discussion and findings of this paper are from a research project that investigated the business and operational issues of these intermediaries as highly volatile business entities in 2002 and an evaluation of these same e-markets in 2005 to determine the changing trends. This paper presents business opportunities, revenue models from intermediary services, factors contributing to success and the challenges e-markets faced in 2002 and in 2005

Developments and Development Directions of Electronic Trade Platforms in US and European Agri-Food Markets: Impact on Sector Organization

Electronic trade platforms support trading transactions between enterprises. They have entered the business landscape including the agri-food sector only a few years ago. However, there already have been dramatic changes in the agri-food sectorÂ’s platform infrastructures. This paper analyzes developments in electronic trade platform infrastructures in the agri-food sector of the US and Europe between 2000 and 2002 and identifies development strategies of successful platforms. Of 85 platforms in existence in the year 2000, only 25 remained active in 2002. But there are still market entries of new platforms and existing platforms form various types of partnerships. The analysis could identify a range of strategic development lines of successful platforms. Initiating cooperation with other platforms on the use of specific features and the development and use of standards, gaining support by major market participants, the improvement of trading functionalities and the expansion of value-added services are the primary lines of development and evolvement of platforms. Platform evolvement tendencies and the present occurrence of the trade platform infrastructure allow for projecting the emergence of an agri-food sector with embedded, interconnected e-commerce infrastructure or mega-hub leading towards a more networked agri-food industry.Electronic commerce, Electronic trade platforms, Agri-food markets, Agribusiness, Marketing,

Investment Timing Game of B2B E-commerce Platforms Under Network Externality

In the competitive investment environment of B2B E-commerce platform, the first mover has the advantage of network externality while the followers have the advantage of declining IT cost. Aimed to investigate the optimal Information Technology (IT) investment timing strategy under the interplay of network effect and declining IT cost, this paper develops an option game model under the uncertainty environment where the market demand is stochastic and the random command shock follows a geometric Brownian motion process. By solving this option game model, we offer the payoffs and threshold of platform as leader, follower or simultaneous investor. Equilibrium results show that there exist two kinds of equilibrium strategies, simultaneous equilibrium and sequential equilibrium when we take into account the interaction of network effect and IT cost decline and platforms choose which strategy depend on the relative magnitudes of network externality and IT cost decline level

Business-to-Business data sharing:an economic and legal analysis

The European Commission announced in its Data Strategy (2020) its intentions to propose an enabling legislative framework for the governance of common European data spaces, to review and operationalise data portability, to prioritise standardisation activities and foster data interoperability and to clarify usage rights for co-generated IoT data. This Strategy starts from the premise that there is not enough data sharing and that much data remain locked up and are not available for innovative re-use. The Commission will also consider the adoption of a New Competition Tool as well as the adoption of ex ante regulation for large online gatekeeping platforms as part of the announced Digital Services Act Package . In this context, the goal of this report is to examine the obstacles to Business-to-Business (B2B) data sharing: what keeps businesses from sharing or trading more of their data with other businesses and what can be done about it? For this purpose, this report uses the well-known tools of legal and economic thinking about market failures. It starts from the economic characteristics of data and explores to what extent private B2B data markets result in a socially optimal degree of data sharing, or whether there are market failures in data markets that might justify public policy intervention. It examines the conditions under which monopolistic data market failures may occur. It contrasts these welfare losses with the welfare gains from economies of scope in data aggregation in large pools. It also discusses other potential sources of B2B data market failures due to negative externalities, risks and transaction costs and asymmetric information situations. In a next step, the paper explores solutions to overcome these market failures. Private third-party data intermediaries may be in a position to overcome market failures due to high transactions costs and risks. They can aggregate data in large pools to harvest the benefits of economies of scale and scope in data. Where third-party intervention fails, regulators can step in, with ex-post competition instruments and with ex-ante regulation. The latter includes data portability rights for personal data and mandatory data access rights