Customer Coalitions in the Electronic Marketplace

M. Tsvetovat, K. Sycara, Y. Chen, and J. Ying, Carnegie Mellon University

In the last few years, the electronic marketplace has witnessed an exponential growth in worth and size, and projections are for this trend to intensify in coming years. While the Internet offers great possiblities for creation of spontaneous communities, this potential has not yet been explored as a means for creating economies of scale among similar-minded customers. This demonstration illustrates the economic incentives behind formation of buying clubs and achivement of effect of economies of scale within temporary agent coalitions. The demonstration also focuses on coalition formation mechanisms for creation of such buying clubs.


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