Find Customer – Bind Customer E-Business The Relevance Principle Prof. Dr. Tilo Hildebrandt

Services on The Internet News groups Search Engines E-Mail Chat W W W Filetransfer Internet Prof. Dr. Tilo Hildebrandt

Internet Characteristics New Quality of Communication Time-delayed communication Actors with own computing facilities Interaction between unknown partners Minimal transaction costs (low entropy)

Exponential Growth of Value Actors on the Internet Exponential Growth of Value Sender: 5 CP Network: 15 CP generally CP = A-1 CP = A2 –A CP:= Communication Possibilities – A:= Actors

Service „Trade“ Production Costs for Seller Total Cost of Products Transaction Costs of Seller Internet Saving Potential Transaction Costs of Buyer Prof. Dr. Tilo Hildebrandt