IT-Enabled Transparent Electronic Markets: The Case of the Air Travel Industry
The electronic market hypothesis predicts that by reducing coordination costs, information technology (IT) will shift industrial organization from hierarchical to market-based forms of economic activity. While academic researchers and practitioners have witnessed these shifts with the advent of the Internet, there is little understanding about the process and the underlying forces that drive them. In this paper, we provide an in-depth analysis of the air travel industry, which has recently experienced significant IT-driven transformations. We conclude that, together with IT, pro-competitive laws and the information-intensive nature of air travel products have triggered competition for consumers with transparent market mechanisms, which is leading to the emergence of more transparent electronic markets in the air travel industry.
Electronics, IT & Software, Telecommunications
Computer Sciences | E-Commerce | Transportation
Information Systems and Management
Information Systems and E-Business Management
GRANADOS, N.; GUPTA, A.; and Kauffman, Robert J..
IT-Enabled Transparent Electronic Markets: The Case of the Air Travel Industry. (2007). Information Systems and E-Business Management. 5, (1), 65-91. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/2133