Business and Public Management
The significance of the market structure, in particular the role of the market maker, on the overall success of a marketplace is still an unresolved issue. This paper examines market structures with a focus on the role of the market maker to identify the implications for participants of the various structures and mechanisms employed in electronic markets. Market maker strategies are classified in a framework according to economic, network, service and community perspectives. The market structures of intermediary, hierarchy, consortium and large group ownership are mapped onto this framework to provide a model that relates structure with strategy. Each ownership model has implications for other market participants. These include the economic motive for intermediaries and political (power) motives for hierarchies and consortia. The large group ownership model has potential for e-markets with community motives. Whilst all marketplaces have architectures it is the architectural detail that makes e-marketplaces different to their traditional counterparts.