Sarkar, Butler & Steinfield (1995) “Intermediaries and Cybermediaries” Revisited: A Review and Identification of Future Research Directions for Intermediaries in Electronic Markets

Intermediation in markets is a phenomenon that has been studied by many researchers from a variety of different theoretical angles. With the introduction and diffusion of the Internet in everyday life, broad predictions were made that called for disintermediation enabled by direct Internet linkages between suppliers and buyers and lower transaction costs. The often-cited paper by Sarkar, Butler and Steinfield (1995) challenges this prediction. By comparing Internet effects on transaction costs with the cost situation ex ante, the paper explains that both direct sales or cybermediated sales are possible outcomes. In this paper we confront key assumptions of the Sarkar et al. paper with recent developments in the tourism market. We find that in the tourism market a multitude of direct and indirect distribution channels exist next to each other. Multi-level distribution channels often including several cybermediaries have been built, resulting in a complex market topology. We also see a large variety of intermediary roles, resulting from highly specialized and highly integrated cybermediary business models. Furthermore the model of Sarkar et al. fails to deliver an explanation for the on-going dynamics in the tourism market in terms of shifts towards more or less intermediaries and the emergence of new intermediary-like business models. By taking these trends into account we are able to identify relevant future research directions in order to extend our understanding of the phenomenon of electronic intermediaries in markets

Fair Trade Contracts for Some, an Insurance for Others

This article analyzes the impact of Fair Trade contracts between sub-groups of farmers and a Fair Trade organization on the spot market price. We analyze a three level vertical chain gathering perfectly competitive farmers upstream who offer their raw product on a spot market to manufacturers who then sell finished products to a downstream retailer. Absent Fair Trade, the entire raw product is sold on the spot market. When a Fair Trade organization offers a Fair Trade contract to a sub-group of farmers, it gathers a Guaranteed Minimum Price clause and a straight relationship between the sub-group of farmers and the retailer. This article highlights several conditions such that a snowball effect exists, i.e farmers outside of the Fair Trade contract also benefit from a higher spot market price.Guaranteed Minimum Price Contracts, Disintermediation, Fair Trade, Vertical Chain, Two-part Tariff Contracts

Securitization in East Asia

Securitization offers a range of benefits for Asiaâs financial systems and economies as a mechanism to assist funding and investment. As a form of structured finance, reliable and efficient securitization can assist development by enabling financial systems to deepen and strengthenâthus contributing to overall economic growth and stability. It must be recognized, however, that there are both overt and more subtle risks in certain uses of securitization. The credit and liquidity crisis that began in the United States and spread to other developed financial systems in mid-2007 exposed the danger associated with securitization: excessive risk-taking or regulatory capital arbitrage rather than a tool to assist more conventional or conservative approaches to funding, risk management, or investment. Securitization has also been criticized for rendering financial markets opaque, while contributing to a growing emphasis in the global economy of credit intermediation conducted in capital markets rather than through banks. This study examines the institutional basis of these concerns by investigating the use of securitization in East Asia, questioning both the growth in regional activity since the 1997/98 Asian financial crisis, and the reasons for it remaining constrained. The paper concludes with a discussion of proposals to support proper development of securitization in the region, including institutional mechanisms that could better allow securitization to enhance development and financial stability. If East Asia begins to make fuller use of securitization, its motive will be to meet funding or investment needs in the real economy rather than balance sheet arbitrage of the kind that peaked elsewhere in 2007.Securitization; East Asia; debt markets; risk transfer

Elected Oligarchy and Economic Underdevelopment: The Case of Guyana

This study proposes the idea that Guyana’s present government can be categorized as an elected oligarchy. It highlights the existence of several binding constraints (or structural bottlenecks) and demonstrates how these constraints are exacerbated by the elected oligarchy to impair the economic development of the country. Using stylized data on economic trends, the paper illustrates the direct and indirect channels through which the elected oligarchy stifles the private sector and consequently economic progress. As such, the paper presents the elected oligarchy as an alternative channel through which private investments are crowded out by the political strategy of the state.Private sector crowding out; Elected oligarchy

Fair Trade Contracts for Some, an Insurance for Others

This article analyzes the impact of Fair Trade contracts between sub-groups of farmers and a Fair Trade organization on the spot market price. We analyze a three level vertical chain gathering perfectly competitive farmers upstream who offer their raw product on a spot market to manufacturers who then sell finished products to a downstream retailer. Absent Fair Trade, the entire raw product is sold on the spot market. When a Fair Trade organization offers a Fair Trade contract to a sub-group of farmers, it gathers a Guaranteed Minimum Price clause and a straight relationship between the sub-group of farmers and the retailer. This article highlights several conditions such that a snowball effect exists, i.e farmers outside of the Fair Trade contract also benefit from a higher spot market price

Grey Literature and Professional Knowledge Making

International audienceWhat does grey literature mean? What role does it play in the production and dissemination of practitioner knowledge? How do reports, presentations and communications, working papers and other un-published material contribute to professional, extra-academic knowledge making? The following paper tries to provide some elements for a better understanding of grey literature, with examples from different collections and disciplines. Moreover, it puts the focus on critical issues like standards, identifiers and quality, and it discusses the impact of open science, i.e. the movement to make scientific research, data and dissemination accessible to all levels of an inquiring society, amateur or professional

Continuous improvement logistics project: a study on the increase of the finished goods warehouse of Unilever at Sta. Iria

This project is called Improvement Logistics Project and aims to study an opportunity of expansion of the output in 80% of the Unilever warehouse at Sta. Iria via an increase in exportations for the next two years. This has been done using the Distibuidora Luís Simões tariff rates as basis of comparison for the as-is and to-be situations. For this matter, an allocation of all the costs of the warehouse is prepared and described with the goal of comparing the differences with and without expansion. The results show that a better outcome is achieved with the investment, but the warehouse is yet to prove its efficiency against the distribution company.NSBE - UN

Reintermediation

Jon M. Garon, Reintermediation, 2 Int. J. of Private Law 227 (2009). The digital revolution has interrupted traditional supply chains and wholesaler relationships with manufacturers and retailers, companies are developing new methodologies to create supplier loyalty critical to control of market share. This article documents the leading strategies being utilised by companies to reassert their relevance in the value proposition for their clients and the consequences of these new business models on intellectual property law, privacy rules and influences on judicial contract interpretation. In Philip Evans and Thomas Wurster\u27s bestselling book, Blown to Bits (Harvard Business Press, 1999), the authors postulated that the inverse relationship between the richness and reach of content was eliminated by the extremely low transaction costs associated with providing consumers highly rich content through digital media. Successful companies have employed reintermediation, the use of proprietary sales channels and exclusive intellectual property-protected techniques to establish brand loyalty, enforce brand exclusivity and command market-share

The European Union-Russia- China energy triangle. Bruegel Policy Contribution Issue #16 December 2019

Concern is growing in the European Union that a rapprochement between Russia and China could have negative implications for the EU. We argue that energy relations between the EU and Russia and between China and Russia influence each other. We analyse their interactions in terms of four areas: oil and gas trading, electricity exchanges, energy technology exports and energy investments. We discuss five key hypotheses that describe the likely developments in these four areas in the next decade and their potential impact on Europe: 1. There is no direct competition between the EU and China for Russian oil and gas; 2. China and the EU both have an interest in curbing excessive Russian energy rents; 3. The EU, Russia and China compete on the global energy technology market, but specialise in different technologies; 4. Intercontinental electricity exchange is unlikely; 5. Russia seems more worried about Chinese energy investments with strategic/political goals, than about EU investments. We find no evidence of a negative spillover for the EU from the developing Russia-China energy relationship.But, eventually, if these risks – and in particular the risk of structural financial disintermediation – do materialise, central banks would have various instruments to counter them

Protecting Financial Markets: Lessons From the Subprime Mortgage Meltdown

Why did the recent subprime mortgage meltdown undermine financial market stability notwithstanding the protections provided by market norms and financial regulation? This article attempts to answer that question by identifying anomalies and obvious protections that failed to work, and then by examining hypotheses that might explain the anomalies and failures. The resulting explanations provide critical insights into protecting financial markets