Business, Management and Accounting
4 years ago

Vertical Marketplaces Dominate, Leaving Horizontal Platforms Struggling to Survive

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MPRA Paper
Horizontal versus Vertical Electronic Business-to-Business Marketplaces
Marco Henseler

Paper Summary

The article compares horizontal and vertical B2B marketplaces in different industry scenarios. When a vertical intermediary enters, it can only integrate all firms in a buy-side dominated industry. In sell-side dominated industries, different levels of integration occur. Horizontal marketplaces for simple goods are driven out of the market in all cases.

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