What is Communication Effect

The aim of this chapter is to analyse electronic marketplaces from an organisational point of view. These marketplaces are considered as a particular form of electronic network and are analysed from the perspective of transaction cost theory. This chapter considers the three classical effects identified by Malone et al. (communication effect, electronic integration effect, electronic mediation effect), and also evaluates a fourth effect on the grounds of empirical evidence; this effect is defined by Wigand as “the strategic electronic network effect.” Adopting the case study approach, the chapter describes how ICT affects marketplace organisation, and reshapes relationships among the actors involved in this particular type of electronic network.