The Impact of Electronic Commerce on Markets for Time-Sensitive Goods

Abstract

This paper examines the impact of electronic commerce on markets for time-sensitive goods. These goods decrease significantly and rapidly in value, possibly becoming worthless, if not used. Typical examples of time-sensitive goods include tickets to sporting events, fresh produce, or empty seats on a departing flight. Drawing from the literature on electronic commerce, technology innovation, and electronic auctions, we suggest nine propositions about online markets for time-sensitive goods and a framework describing how the nature of the good, the parties involved in the exchange, and the market organizing institutions influence the impact of electronic commerce on these markets. We examine the current state of electronic market adoption for time-sensitive goods through a topology of these goods and a thorough search for their markets. Findings indicate low levels of adoption of both fixed price and auction mechanisms for markets for time sensitive goods, suggesting the presence of significant implementation challenges. Finally, we discuss the implications of these findings and suggest future research opportunities.