A Research on Electronic Intermediaries in Wholesale Markets

As electronic commerce becomes increasingly popular,there apear new electronic intermediaries that provide information services for traders.If electronic intermediary services are introduced to wholesale markets where qualities vary,it will not only improve market efficiency by reengineering transaction processes,but also create new transaction risks for market participants because of the separation of product movements from market transactions. Electronic intermediaries can offer market efficiency auctions and establish the trust building processes that reduce risks. Trust building processes by electronic intermediaries can lead to concentration of electronic transactions on high quality products.Thus, average prices in electronic intermediary markets can be higher than in traditional markets.