Smits en Jansen (2008) - Impact on Electronic Auctions on Health care markets Flashcards
what is a standard/now-web auction
a market institution with an explicit set of rules determining resource allocation and
prices on the basis of bids from the market participants and as a market mechanism to match supply and demand
of a specific product or service, where one or more customers meet one or more suppliers. The buyers (bidders)
determine the price for the resource (product/service) and the seller determines the rules of the auction.
Reverse auction
the sellers of a good or service determine the price and the buyers determine the rules of
auction.
What are electronic auctions?
Brings buyersand sellers together via some type of electronic media, and can be regarded as an interoganizational system (IOS) that allows participating buyers and sellers to exchange information about process and product offerings, supporting their interactions in order to identify, select and execute transactions
What is Electronic Markets Hypothesis
by reducing the costs of market coordination, IT will lead to an overall shift towards the use of markets, rather than hierarchies, to coordinate economic activity
What is Electronic Hierarchy Hypothesis
predicts the growth of electronic hierarchies because IT enables privileged access to market data formed by small groups of vertically arranged companies that develop very close relationships
What is Move to the Middle Hypothesis
predicts a market structure between markets and hierarchies, in which companies move towards more outsourcing (more electronic markets), and at the same time build on a reduced set of stable partnerships.
What is Threatened Intermediary Hypothesis
predicts the decline of traditional intermediaries in the value chain because of IT enabled data exchange.
What four factors are used in order to evaluate the effect of electronic auctions on markets
- Market structure
- Market behaviour
- Market performance
