Information Architecture and Electronic Market Performance


Speaker


Abstract

Electronic markets are one of the most prominent business applications

of the Internet, so determining the factors that drive their

performance is of great value. This thesis shows that an important

driver of electronic market performance is the information architecture

of the market, which describes what type of information is

available to whom during the market process. Two studies of

electronic market initiatives at a large Dutch flower auction highlight

how information and communication technology (ICT) affects

the information architecture of the market and the consequences

for market behavior. ICT not only affects existing markets, but also

offers opportunities to design innovative new market mechanisms.

One of these is a multidimensional auction, in which bidders bid not

only on price, but also on dimensions such as quality and delivery

time. The effects of different information architectures of multidimensional

auctions are explored in laboratory experiments.

The findings of the three studies are synthesized into a theory of

electronic markets that has important implications for market

designers, traders and researchers.