Characteristics of electronic markets

Are there economic incentives for electronic commerce (e-commerce), or is it just hype? This paper evaluates the cost-based differences between traditional markets (such as retail stores) and electronic markets (e-markets) both from the buyer's (demand side) perspective and the seller's (supply side) perspective. The implications that a shift toward greater electronic market utilization have for transaction intermediaries, interactive service providers (ISPs), and government are discussed. We find that there are significant cost-based differences between traditional and electronic markets for both buyers and sellers, and that electronic markets affect industry structures as well as future sources of organizational revenue. (C) 1997 Elsevier Science B.V.