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The Effects of E-commerce on the Structure of Intermediation

Author

Listed:
  • Stefan W. Schmitz

    (ICE, Austrian Academy of Sciences)

Abstract

The paper questions the notion that the diffusion of electronic commerce will lead to disintermediation. Rather than interpreting intermediation as a single service it is pointed out that intermediaries can provide a number of services. The analysis based on the New Institutional Economics, Market Microstructure Theory, and Information Economics shows that the three intermediation services studied are, generally, not under threat by the diffusion of electronic commerce. The overall effects on intermediation depend on the relevance of these services relative to others (e.g. order processing) which are supposed to become obsolete.

Suggested Citation

  • Stefan W. Schmitz, 2002. "The Effects of E-commerce on the Structure of Intermediation," Industrial Organization 0211002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0211002
    Note: Type of Document - pdf; prepared on wordfile on mac; pages: 36; figures: none. Will be published in C. Steinfield (ed.), New Directions in Research on E-Commerce, Purdue University Press, West Lafayette, Indianna (forthcoming)
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0211/0211002.pdf
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    Citations

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    Cited by:

    1. Tobias Kollmann & Simon Hensellek & Katharina de Cruppe & André Sirges, 2020. "Toward a renaissance of cooperatives fostered by Blockchain on electronic marketplaces: a theory-driven case study approach," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(2), pages 273-284, June.
    2. Pierre Volle, 2002. "Produit et information géographique : le géomerchandising," Post-Print halshs-00165165, HAL.
    3. A. Amarender Reddy & Mehjabeen, 2019. "Electronic National Agricultural Markets, Impacts, Problems and Way Forward," IIM Kozhikode Society & Management Review, , vol. 8(2), pages 143-155, July.

    More about this item

    Keywords

    B2C eCommerce; intermediation; new institutional economics;
    All these keywords.

    JEL classification:

    • L - Industrial Organization
    • L - Industrial Organization
    • B - Schools of Economic Thought and Methodology

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