Private electronic market

E-commerce
Digital content
Ebook Software Streaming media
Retail goods and services
Advertising Auctions Banking DVD-by-mail Distribution Food ordering Grocery Marketplace Pharmacy Ride-hailing Travel
Online shopping
Comparison shopping Social commerce Trading communities Wallet
Mobile commerce
Payment Ticketing
Customer service
Call centre Help desk Live support software
E-procurement
Purchase-to-pay
Super-apps
v t e

Part of a series on
Auctions
Types
All-pay Chinese Amsterdam Anglo-Dutch Barter double Best/not best Brazilian Calcutta Candle Click-box bidding Combinatorial Common value Deferred-acceptance Discriminatory price Double Dutch English Forward French Generalized first-price Generalized second-price Japanese Knapsack Multi-attribute Multiunit No-reserve Rank Reverse Scottish Sealed first-price Simultaneous ascending Single-price Traffic light Uniform price Unique bid Value of revenues Vickrey Vickrey–Clarke–Groves Walrasian Yankee
Bidding
Shading Calor licitantis Cancellation hunt Jump Rigging Sniping Suicide Tacit collusion
Contexts
Algorithms Autos Art Charity Children Players Domain names Flowers Loans Scam Slaves Spectrum Stamps Virginity Wine Wives
Theory
Digital goods Price of anarchy Revenue equivalence Winner's curse
Online
Ebidding Private electronic market Software
v t e

A private electronic market (PEM) uses the Internet to connect a limited number or pre-qualified buyers or sellers in one market. PEMs are a hybrid between perfectly open markets (e.g. exchanges where there is no pre-existing relationship between buyer and seller - similar to eBay) and closed contract negotiations (such as a sealed bid tender, where there is no visibility between competitors and hence no response to competition). The core idea of PEMs is to create competition among buyers/sellers while allowing buyers/sellers to adjust all those aspects of the deal that are typically only dealt with in a negotiation. This creates a problem of "comparing apples and oranges": bids may be quite different in many dimensions and therefore cannot easily be compared. Apart from the dimension of price these could include pre-negotiated discounts (e.g. for loyalty), specific qualities, combinations of goods and services with conditional pricing, freight differentials, contract fulfillment timing, payment terms, or deliberate constraints such as market share limits.