Electronic marketplaces revolutionize buyer search costs, boosting market efficiency and competition.
Electronic marketplaces help buyers find products more easily, reducing search costs and making markets more efficient. By lowering the barriers to finding prices and products, electronic marketplaces make it harder for sellers to charge high prices and help resources be used more effectively. This study looks at how reducing search costs can improve markets with different products, showing that electronic marketplaces can lead to better outcomes for buyers, sellers, and intermediaries. It also suggests that separating price and product information can promote competition and benefit everyone involved.