Agent-Intermediated Electronic Markets in International Freight Transportation
In many industries, agent-intermediated markets are inefficient because information about latent demand and supply never gets to market. We demonstrate how information technology (IT) in the form of an agent-intermediated electronic market (EM) alleviates this problem by enhancing the agent-as-market-maker using the international freight transportation industry as an example. We find that an EM increases agent participation and investment thereby increasing demand and supply. Because of tradeoffs between incentives for investment, the EM chooses a profit allocation between agents resulting in limited agent participation. In addition, when price depends on demand and supply balances, price and volume in the market can increase simultaneously.
* Elsevier: We are able to post the post print/accepted author manuscript or the pre-print file (http://www.elsevier.com/journal-authors/author-rights-and-responsibilities#author-posting). Article deposited according to Publisher's policy 06/11/2015
Electronic markets, Transportation, Intermediation
Nault, B.R., and A.S. Dexter, "Agent-Intermediated Electronic Markets in International Freight Transportation," Decision Support Systems, 41 (May 2006), 787-802.