Middleman

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COM 548 Econ of Digital Communication

Vera Hsu

The definition of a good Middleman

Facilitate transactions that would otherwise not occurserve as a buffer in case of supply or price shocks.. Provide market information to their clientsprovide the value-added products and servicesHas high credibility

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What Benkler says?M

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Why the online exchanges succeed in TX, fail in CA?

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Different Market Structure

Different trade behavior

Different

RiskMana

gement

Different markets require different structures.

The technology needs to Match the sociology.

Markets are relationships. Markets are social.

Tips for a mechanism to be a better middleman…

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Reintermediation New middleman

revives…

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I can solve information overload problem.

I am good at killing the emergency.

Credits & ResourcesSlide 11. Superman picturehttp://www.simpsonstrivia.com.ar/superman-picture.htm2. Batman logo picturehttp://newness.wordpress.com/2008/08/25/why-do-we-fall/3. Iron man picturehttp://hollywoodwiretap.com/?module=news&action=story&id=246604. Spiderman picturehttp://elementaryteacher.wordpress.com/2009/04/01/spider-man-rescues-thai-student/5. Kollock, P., and Braziel, E. R. (2006). How not to build an online market: the

sociology of market microstructure. In Advances in Group Processes: Social Psychology of The Workplace, edited by S.R. Thye and E.J. Lawler. New York: Elsevier Science.

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