Chapter 19: Two-sided e-commerce marketplaces and the future of retailing
This chapter describes the growth and proliferation of online two-sided marketplaces starting with their emergence in the mid-1990s. I begin with a brief history of online marketplaces, followed by some of the key strategic and economic considerations of online marketplaces. Special emphasis is placed on price discovery and sales mechanisms, as well as on the importance of reputation and feedback mechanisms in the success of online marketplaces. I also discuss how online marketplaces have emerged as a laboratory to test a variety of theories about buyer and seller behavior in the field.
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