Zero Entry Barriers in a Computationally Complex World: Transaction Streams and the Complexity of the Digital Trade of Intangible Goods

Zero Entry Barriers in a Computationally Complex World: Transaction Streams and the Complexity of the Digital Trade of Intangible Goods

Brian Subirana
Copyright: © 2000 |Pages: 13
DOI: 10.4018/joeuc.2000040105
OnDemand:
(Individual Articles)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

In this paper we analyze how transactions related to the digital trade of intangible goods and services is being performed on the Internet. The adoption of electronic markets in an industry has a desintermediation potential because it can create a direct link between the producer and the consumer (without the need for the intermediation role of distributors). Electronic markets lower the search cost allowing customers to choose among more providers (which ultimately reduces both the costs for the customer and the profits for the producer). In this paper we contend that electronic markets on the Internet* have the opposite effect, resulting in the increase of intermediators. We introduce transaction streams which model how transactions related to the digital trade of intangible goods are being conducted. Transaction streams help explain the types of new intermediators that are appearing on the Internet and why entry barriers are close to zero. We also prove that in transaction stream-based electronic markets, searching for the best price of intangible goods is NP-complete.

Complete Article List

Search this Journal:
Reset
Volume 36: 1 Issue (2024)
Volume 35: 3 Issues (2023)
Volume 34: 10 Issues (2022)
Volume 33: 6 Issues (2021)
Volume 32: 4 Issues (2020)
Volume 31: 4 Issues (2019)
Volume 30: 4 Issues (2018)
Volume 29: 4 Issues (2017)
Volume 28: 4 Issues (2016)
Volume 27: 4 Issues (2015)
Volume 26: 4 Issues (2014)
Volume 25: 4 Issues (2013)
Volume 24: 4 Issues (2012)
Volume 23: 4 Issues (2011)
Volume 22: 4 Issues (2010)
Volume 21: 4 Issues (2009)
Volume 20: 4 Issues (2008)
Volume 19: 4 Issues (2007)
Volume 18: 4 Issues (2006)
Volume 17: 4 Issues (2005)
Volume 16: 4 Issues (2004)
Volume 15: 4 Issues (2003)
Volume 14: 4 Issues (2002)
Volume 13: 4 Issues (2001)
Volume 12: 4 Issues (2000)
Volume 11: 4 Issues (1999)
Volume 10: 4 Issues (1998)
Volume 9: 4 Issues (1997)
Volume 8: 4 Issues (1996)
Volume 7: 4 Issues (1995)
Volume 6: 4 Issues (1994)
Volume 5: 4 Issues (1993)
Volume 4: 4 Issues (1992)
Volume 3: 4 Issues (1991)
Volume 2: 4 Issues (1990)
Volume 1: 3 Issues (1989)
View Complete Journal Contents Listing