Some specific Austrian insights on markets and the "new economy"

In section 1 of this contribution, we will recall the usual arguments which are put forward to analyze the New Economy (NE) as the empirical realization of the Competitive Economic Equilibrium (CEE) model. After having stressed the limits of these arguments, we will try to show that some Austrian concepts and developments better fit to explain the economic impact of Information Technologies on present markets. This purpose is characterized in section 2 of this contribution. Finally, in section 3, we will refer to some concrete examples taken from the reality of electronic markets, in order to emphasize how these concepts and developments allow a better understanding of the working of markets in the NE, even if they exhibit some limitation.Austrian legacy, subjectivism, New Economy, economic analysis

Twenty years of electronic markets research: looking backwards towards the future

Over the past 20 years the field of electronic markets has seen a considerable proliferation and differentiation. This position paper takes the opportunity of the 21st volume of “Electronic Markets” to look back at important developments and insights, suggesting a framework that captures the multiple facets and indeed empirical breadth and depths of this concept. It comprises three perspectives which include the market environment, governance choices by economic actors as well as the entrepreneurial dynamics of firms who initiate and operate market platforms as their business. In addition, we propose to study the interplay of technological, market, and institutional drivers in order to understand the phenomenon of electronic markets, which is also a precondition for designing electronic markets. Both activities involve more than an economically motivated choice between the discrete alternatives of markets and hierarchies. Rather, electronic markets are configurations across multiple, interdependent dimensions: Technology is an important force in shaping the field, but needs to be complemented by considerations of the competitive environment and the setting of rules in order to ensure efficient and effective plays of the game. Based on this framework, this position paper develops six propositions for the future of electronic markets. Overall, the advantages of intermediated structures, an ongoing technological sophistication, as well as further innovation in market mechanisms and services make electronic markets an ena-bler for many interorganizational value chains. While we are confident that the ingenuity of inventors will yield a flow of innovations, recent economic crises have shed a dark shadow over the sustainability of electronic markets. They call for suitable rules and regulation amenable to economic prosperity and stability to be agreed upon on a broad level

Transformation of the Software Components and Web Services Market

The Service Oriented Computing paradigm, with as its main manifestation web-service technology, holds high promises, but exploits its full potential only when third-party web-services are traded in a service market to enable effective development of net-enhanced organizations and business networks. After the introduction of software source code libraries and the rise of Software Component Markets (SCMs) since 1999, Web Service Markets (WSM) represent the third wave in the trade of reusable software components. However, very little is known about the current status, structure and trends within the WSM. We present a longitudinal study of the structure of the SCM in 1999, 2000, and 2006 and a study of the WSM in 2006. The SCM has grown into a large, polluted, and un-transparent market of around 30,000 software components, offered by 28 producers, 28 catalogues, and 8 intermediaries. Our study shows that the WSM is emerging and in the early stage of development in 2006. SCM and WSM still have a long way to become transparent and effective mechanisms for organizations to obtain powerful, re-usable, and interoperable components for business networking

Competing in the Digital Economy?: The Dynamics and Impacts of B2B E-commerce on the South African Manufacturing Sector

ICTs, B2B e-commerce, manufacturing sector, South Africa

An Empirical Exploration of Multi-Attribute Bidding: Redefining Intermediary Roles in Electronic Markets

The vast majority of electronic markets have been based purely on a single variable (price) as the factor that determines ‘the winner’. Multi-attribute auctions are likely to be more appropriate for procurement scenarios where factors other than price need to be considered in determining the outcome. Nevertheless, there is a scarcity of empirical research on multi-attribute electronic auctions. In particular, there is little empirical evidence of how multi-attribute auctions fit with our theoretical conceptualisation of electronic markets. This paper uses the market design aspects of multi-attribute auctions to explore a multivariable electronic auction, using frameworks from electronic market process design and systematic sourcing. Evidence from the case study illustrates that multi-variable electronic auctions can be used to procure a wider range of operating and manufacturing input that has been considered possible with traditional, price only, auctions. The findings reveal how the use of an electronic auction intermediary creates a middle ground of interaction between spot and systematic sourcing, by automating for the buyer certain general parameters and trade context processes