Welcome to the InfoSci Platform
Market Transparency in Business-to-Business e-Commerce: A Simulation Analysis

Market Transparency in Business-to-Business e-Commerce: A Simulation Analysis

Yasin Ozcelik, Zafer D. Ozdemir
Copyright: © 2011 |Volume: 7 |Issue: 4 |Pages: 17
ISSN: 1548-1131|EISSN: 1548-114X|EISBN13: 9781613506721|DOI: 10.4018/jebr.2011100105
Cite Article Cite Article

MLA

Ozcelik, Yasin, and Zafer D. Ozdemir. "Market Transparency in Business-to-Business e-Commerce: A Simulation Analysis." IJEBR vol.7, no.4 2011: pp.62-78. http://doi.org/10.4018/jebr.2011100105

APA

Ozcelik, Y. & Ozdemir, Z. D. (2011). Market Transparency in Business-to-Business e-Commerce: A Simulation Analysis. International Journal of E-Business Research (IJEBR), 7(4), 62-78. http://doi.org/10.4018/jebr.2011100105

Chicago

Ozcelik, Yasin, and Zafer D. Ozdemir. "Market Transparency in Business-to-Business e-Commerce: A Simulation Analysis," International Journal of E-Business Research (IJEBR) 7, no.4: 62-78. http://doi.org/10.4018/jebr.2011100105

Export Reference

Mendeley
Favorite Full-Issue Download

Abstract

Market transparency refers to the level of current trade information revealed to participants by market makers. This paper analyzes the effect of market transparency on the outcomes of posted-offer style Business-to-Business e-commerce markets. First, increasing market transparency improves the price-tracking ability of sellers, and results in higher efficiency. However, revelation of quantity information on transactions is not very crucial as opposed to price information. Second, although sellers extract significantly higher surplus (profit) than buyers can do in a posted-offer market, the difference vanishes with increasing market transparency. Lastly, sellers in posted-offer markets respond poorly to external demand shocks. Interestingly, the poor price-tracking performance of sellers hurts buyers more. In other words, seller profits are much less sensitive to demand shocks as compared to buyer surpluses.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.