Only a few years ago, the emergence of online markets and eCommerce was expected to revolutionise market structures, supply chains and company performance.
The fact that the cost of information and communication would become very low, led to the assumption that markets would show increased transparency, and speed of reaction would reach hitherto unknown dimensions. eCommerce was forecast to facilitate communication between potential market participants and to wash away the geographical boundaries of markets. Productivity was supposed to rise dramatically due to precipitating transaction costs. All of these assumptions were based on extrapolations of a few spectacular cases or on theoretical models.
However, the expected market development did not occur. After the dotcom shake-up and a period of sobering expectations, this project reconsiders the impacts of eCommerce by taking into account recent empirical evidences. The results will be published in Electronic Markets, the International Journal of Electronic Commerce & Business Media.
Co-operation partner: Brigitte Preissl, DIW – Berlin