Making Markets: How Firms Can Design and Profit from Online Auctions and Exchanges

IEEE ENGINEERING MANAGEMENT REVIEW

Book Reviews: Volume 31, Number 1, First Quarter 2003

by Ajit Kambil and Erik Van Heck

Harvard Business School Press, 2002

ISBN 1-57851-658-7

Breadth of Audience: 2.50 (Fair)
Topical Utility: 3.25 (Good)
Content Applicable: 2.69 (Fair)
Writing Quality: 2.97 (Good)
Overall: 2.85 (Good)

COMMENTS FROM THE REVIEWERS:

1. This book, relatively easy to read and follow, introduces the concepts of how on-line auctions and exchanges came into being, operated initially, operate today and, in some cases, ceased to exist. The authors identify a number of example companies across multiple industries that have worked within the auction and exchange business space. However, the discussions about the companies and some of their actions do not really lead to specific details about “how firms can design and profit from on-line auctions and exchanges,” the subtitle of the book. With a little bit more attention to translating the stories to specific recipes or steps for success, the level of applicability would have increased considerably.

In a number of areas, even though the authors had interacted with many companies’ representatives, it almost appears that there was still a hedge towards the marketing of the auctions and exchanges, as opposed to the operational aspects. There is much to gain from the specific examples but it would have been an even greater value to the book if the authors provided a little more detail and some more specific conclusions based on hose details. The best thing the authors did was to provide examples that transcend specific industries in many of their examples by including some well-known names that can easily be recognized by everyone.

2. This book is based on over 100 case studies on electronic products and market makers. The authors have highlighted the reasons for success of eBay by smart alliance and killing the competition. Stakeholders benefit framework (p. 64) and transaction mechanism used by 320 commercial sites (p. 184) is well designed. The technique by Prof. Bruce Weinberg is worth emulating by the faculty of business schools. This book will be an asset to any management school library as well as business houses planning e-Commerce.

ENGINEERING MANAGEMENT REVIEW
A publication of the IEEE Engineering Management Society