Research Summary
Research Summary
"Modeling B2B Exchanges" (with Gabor Fath)
Description
B2B exchanges are revolutionizing the way businesses will buy and sell a variety of intermediary products and services. It is estimated that most of the roughly $7 trillion worth of business transactions are likely to go through these new institutions within the next decade. This paper tries to understand the economics governing the transactions within B2B exchanges and analyze their likely evolution over time. In doing so, we hope to shed light on a number of critical concepts broadly used in the context of B2B exchanges (e.g. market fragmentation, critical mass) as well as to provide managers with normative insights on how to bring to success these new institutions.