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Journal of Theoretical and Applied Electronic Commerce Research is published by MDPI from Volume 16 Issue 3 (2021). Previous articles were published by another publisher in Open Access under a CC-BY 3.0 licence, and they are hosted by MDPI on mdpi.com as a courtesy and upon agreement with Faculty of Engineering of the Universidad de Talca.
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Article

From traditional transactions to B2B: a contract theoretical analysis

by
María Verónica Alderete
CONICET- Institute of Economics, Universidad Nacional del Sur, Department of Economics
J. Theor. Appl. Electron. Commer. Res. 2010, 5(3), 17-26; https://doi.org/10.4067/S0718-18762010000300003
Submission received: 17 May 2010 / Revised: 3 September 2010 / Accepted: 15 October 2010 / Published: 1 December 2010
Versions Notes

Abstract

This paper extends Alderete (2009) model of screening contracts to build electronic commerce between a large firm and a small and medium sized enterprise (SME) supplier. The large firm (principal) must choose among SME suppliers (agents) that differ in costs and utility for the ICT technology (network good). The method is based on Compte and Jehiel (2008), whose main insight is that when several potential candidates compete for the task, the principal will in general improve the performance of her firm by inducing the member candidates to assess their competence before signing the contract (through an appropriate choice of contracts). In the presence of different preferences for the network good, we show that social surplus increases.
Keywords: Information Economics; Electronic Commerce; Game Theory; Mechanism Design; Small and Medium Sized Enterprises Information Economics; Electronic Commerce; Game Theory; Mechanism Design; Small and Medium Sized Enterprises

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MDPI and ACS Style

Alderete, M.V. From traditional transactions to B2B: a contract theoretical analysis. J. Theor. Appl. Electron. Commer. Res. 2010, 5, 17-26. https://doi.org/10.4067/S0718-18762010000300003

AMA Style

Alderete MV. From traditional transactions to B2B: a contract theoretical analysis. Journal of Theoretical and Applied Electronic Commerce Research. 2010; 5(3):17-26. https://doi.org/10.4067/S0718-18762010000300003

Chicago/Turabian Style

Alderete, María Verónica. 2010. "From traditional transactions to B2B: a contract theoretical analysis" Journal of Theoretical and Applied Electronic Commerce Research 5, no. 3: 17-26. https://doi.org/10.4067/S0718-18762010000300003

APA Style

Alderete, M. V. (2010). From traditional transactions to B2B: a contract theoretical analysis. Journal of Theoretical and Applied Electronic Commerce Research, 5(3), 17-26. https://doi.org/10.4067/S0718-18762010000300003

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