An Institutional Approach to Modeling the Structure and Functionality of Brokered Electronic Markets

Roman Brandtweiner and Arno Scharl
International Journal of Electronic Commerce,
Volume 3, Number 3, Spring 1999, pp. 71.


Abstract: In the evolution of mankind, markets have developed as independent and highly functional institutions. This paper identifies the major structures, processes, and players of real markets on an abstract scale, and transforms these elements into virtual objects for the purpose of designing a conceptual model of an electronic market. The particular form of market it concentrates on, the Oriental bazaar, is the traditional and dominant market type in Oriental cities. The main characteristic of an Oriental bazaar is the negotiation system that determines the prices of individual products and services.

Key Words and Phrases: Brokered markets, business-to-consumer commerce, electronic markets, Internet business models.