Information Architecture and Electronic Market Performance
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.
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