Abstract - The Information Society 13(1)

Organization of Electronic Markets: Contributions from the New Institutional Economics.

Arnold Picot, Christine Bortenlanger and Heiner Rohrl.

Electronic markets are increasingly gaining scientific and economic attention. In order to realize their often postulated rationalization potential, a closer look into their organization is necessary. New institutional economics provides a body of theory well suited for this task. Transaction cost theory helps to understand why transactions are more often conducted via markets and why those markets require organization. Principal-agent theory explains future (dis-)intermediation structures in electronic markets. Finally, property rights theory helps to understand why a certain level of market intransparency will remain in electronic markets.

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