Are there economic incentives for electronic commerce (e-commerce), or is it just hype? This paper evaluates the cost-based differences between traditional markets (such as retail stores) and electronic markets (e-markets) both from the buyer's (demand side) perspective and the seller's (supply side) perspective. The implications that a shift toward greater electronic market utilization have for transaction intermediaries, interactive service providers (ISPs), and government are discussed. We find that there are significant cost-based differences between traditional and electronic markets for both buyers and sellers, and that electronic markets affect industry structures as well as future sources of organizational revenue.

Original languageEnglish (US)
Pages (from-to)185-198
Number of pages14
JournalDecision Support Systems
Issue number3
StatePublished - Nov 1997


  • Business strategy
  • Consumer behavior
  • Electronic commerce
  • Electronic markets
  • Industry structure
  • Transaction cost economics

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Information Systems and Management

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