This is the first of two research reports examining the role of dynamic pricing and B2B emarketplaces in the supply chain. In this report, we set the stage for our analysis of emarketplaces by characterizing the mechanisms by which buyers and suppliers in Business-to-Business (B2B) relationships agree on transaction terms and conditions such as prices and order quantities. We focus on two particular mechanisms: relationship-based contract coordination and market-based price coordination. This survey describes the essential characteristics of each mechanism, underscoring its advantages and disadvantages. We also briefly discuss the industry and market conditions for which each mechanism is best suited.
By: William Grey, Thomas Olavson (Stanford Univ.), Dailun Shi
Published in: RC22037 in 2001
LIMITED DISTRIBUTION NOTICE:
This Research Report is available. This report has been submitted for publication outside of IBM and will probably be copyrighted if accepted for publication. It has been issued as a Research Report for early dissemination of its contents. In view of the transfer of copyright to the outside publisher, its distribution outside of IBM prior to publication should be limited to peer communications and specific requests. After outside publication, requests should be filled only by reprints or legally obtained copies of the article (e.g., payment of royalties). I have read and understand this notice and am a member of the scientific community outside or inside of IBM seeking a single copy only.
Questions about this service can be mailed to reports@us.ibm.com .