When Big Three automakers GM, Ford and DaimlerChrysler announced the formation of a single business-to-business (B2B) marketplace for buying and selling supply chain-related auto products, the firms inadvertently demonstrated the promise and peril of e-commerce on the Internet.
The same fears are repeated over and over again. The described case managed to grow since then and now consists of two or three other major car producers.
It is good that, although not quite in the exact way, those matters are considered, but in my opinion we should look in different direction.
Electronic marketplaces, and e-hub (especially dependent ones! ) in particular, are powerful anti-competitive tools for reasons other than increased market power of buyers. It is the vast scope for collusion, illegal market information sharing, price commitment, etc. that should be our major concern (or aim :) ). I would love to see some serious articles on that issue.
simon
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And Now, B2B Cartels?
Posted by: Stephen Caswell March 8, 2000 12:00 AMWhen Big Three automakers GM, Ford and DaimlerChrysler announced the formation of a single business-to-business (B2B) marketplace for buying and selling supply chain-related auto products, the firms inadvertently demonstrated the promise and peril of e-commerce on the Internet.
It is good that, although not quite in the exact way, those matters are considered, but in my opinion we should look in different direction.
Electronic marketplaces, and e-hub (especially dependent ones! ) in particular, are powerful anti-competitive tools for reasons other than increased market power of buyers. It is the vast scope for collusion, illegal market information sharing, price commitment, etc. that should be our major concern (or aim :) ). I would love to see some serious articles on that issue.
simon