CHAPTER TEN
Market Design, Operation, and Competition
The emergence of business ecosystems implies that a large and increasing part of our economy is being driven by market-based transactions. The design and management of complex marketplaces has therefore become a crucial operational challenge for all firms, and the third foundation for competition in a networked setting.
Market Failures
Although it is impossible to get an accurate number, it is likely that hundreds of thousands of new Web-based marketplaces—trading private jets, dog-walking services, and everything in between—were created between 1996 and 2000. Launched by organizations as different as Pets.com and General Motors, many of these enterprises were Wall Street darlings. ...
