American Journal of Management Science and Engineering

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New Open Digital Marketplaces: Giving Buy, Sell and Trust Control Back to Users

Received: 29 December 2019    Accepted: 07 January 2020    Published: 23 January 2020
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Abstract

Companies such as Amazon, Flipkart, Zomato, Oyo and Uber which we refer to as Digital Marketplaces are globally emerging across different business sectors. These marketplaces connect buyers and sellers and the marketplace owners act as central trustworthy authority to provide trade assurances. However, such a trust model could be problematic. Without any alternatives, rapidly growing users of the marketplace, both buyers and sellers are forced to trust the marketplace owner to satisfy their needs. Regulating users, control over digital transactions, exercising autonomy are other issues to name (but) a few indicating that marketplace owners are transparently replacing governments. In our view, Digital Marketplaces should be democratic as the markets in the real-world and control must be given back to the users since they are the contributors in the growth of these marketplaces. This paper presents a new way of Open Digital Marketplaces that model real-world buyer and seller interactions. Proposed solution involves users of marketplace as partakers in a digital transaction for connecting buyers and seller with trade assurances by leveraging their personal connections. Trust is made localized and the supply chain becomes subjective to the user as in the real-world. Switching the role of marketplace owner with the users, eliminates the need for trusting the marketplace owner as a central authority as well as diminishes autonomy and authority of the marketplace owner over the digital transactions. Users, with whose efforts trade is made digitally successful, are rewarded with an incentive, a type of shareholding in the digital transaction, as per the electronic contracts digitally signed by participants before executing the transaction. Disputes or violations of contract are resolved by an automated system, can also be escalated to an independent body or to a local court for a decision. Feedback received from the experiment based on the implementation of the proposed solution suggested ease of doing business by small businesses as well as increase in revenue. It also creates new opportunities for users to earn revenue share in digital transactions, instead of only the marketplace owners, in the emerging gig economy.

DOI 10.11648/j.ajmse.20200501.11
Published in American Journal of Management Science and Engineering (Volume 5, Issue 1, January 2020)
Page(s) 1-9
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

E-commerce, Digital Marketplaces, Trust, Social Media, Digital Democracy, Gig Economy, Management

References
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[3] N. Islam, "Making Digital Marketplaces Fairer", SSRN, 2018.
[4] M. Ciocca, "Online Product Localization: Challenges and Solutions in Global Online Marketplaces", Digital and Social Media Marketing, pp. 275-282, 2019.
[5] I. Hong, "Predicting Consumer Trust in an Intermediary in B2C Online Marketplaces: Insights from the Korean Experience.", in Novel Theories and Applications of Global Information Resource Management, IGI Global, 2020, pp. 154-183.
[6] M. Goyens, "Effective Consumer Protection Frameworks in a Global and Digital World", Journal of Consumer Policy, 2019.
[7] H. Subramanian, "Decentralized blockchain-based electronic marketplaces", Communications of the ACM, vol. 61, no. 1, pp. 78-84, 2017.
[8] B. Edelman and A. Stemler, "From the Digital to the Physical: Federal Limitations on Regulating Online Marketplaces", Harv. J. on Legis, vol. 56, p. 141, 2019.
[9] K. Kapanova and K. Koidl, "Towards a model of interpersonal trust in Social Media Applications", in Proceedings of the 5th EAI International Conference on Smart Objects and Technologies for Social Good, Valencia, Spain, 2019.
[10] D. Holtz, D. MacLean and S. Aral, "Social Structure and Trust in Massive Digital Markets", in International Conference on Information Systems (ICIS). Association for Information System, 2017.
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[12] X. Fan, L. Liu, R. Zhang, Q. Jing and J. Bi, "Decentralized Trust Management: Risk Analysis and Trust Aggregation", ACM Computing Surveys, 2019.
[13] J. Sänger and G. Pernul, "Interactive Reputation Systems", Business & Information Systems Engineering, vol. 60, no. 4, pp. 273-287, 2018.
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[15] E. Spitko, "Reputation Systems Bias in the Platform Workplace", BYU Law Review, 2019.
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[17] S. Clarke, "Trust*: Extending the Reach of Trust in Distributed Systems", PhD thesis, University of Hertfordshire, 2009.
[18] S. Herald, S. Clarke and B. Christianson, "A non-transitive trust model for key distribution", Journal of Information Assurance and Security, vol. 5, no. 6, pp. 618–625, 2010.
[19] K. Smith, "53 Incredible Facebook Statistics and Facts", Brandwatch, 2019.
[20] S. Bhagat, M. Burke, C. Diuk, I. Filiz and S. Edunov "Three and a half degrees of separation", Facebook Research, 2019.
[21] A. Rezvanian, B. Moradabadi, M. Ghavipour, M. Daliri Khomami and M. Meybodi, "Social Trust Management", Studies in Computational Intelligence, pp. 241-279, 2019.
Author Information
  • Department of Computer Science and Digital Technologies, RoboGenius, Gurgaon, India

  • Department of Computer Science and Digital Technologies, RoboGenius, Gurgaon, India

  • Department of Computer Science and Digital Technologies, RoboGenius, Gurgaon, India

Cite This Article
  • APA Style

    Vrinda Almadi, Anmol Saxena, Sarvjeet Herald. (2020). New Open Digital Marketplaces: Giving Buy, Sell and Trust Control Back to Users. American Journal of Management Science and Engineering, 5(1), 1-9. https://doi.org/10.11648/j.ajmse.20200501.11

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    ACS Style

    Vrinda Almadi; Anmol Saxena; Sarvjeet Herald. New Open Digital Marketplaces: Giving Buy, Sell and Trust Control Back to Users. Am. J. Manag. Sci. Eng. 2020, 5(1), 1-9. doi: 10.11648/j.ajmse.20200501.11

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    AMA Style

    Vrinda Almadi, Anmol Saxena, Sarvjeet Herald. New Open Digital Marketplaces: Giving Buy, Sell and Trust Control Back to Users. Am J Manag Sci Eng. 2020;5(1):1-9. doi: 10.11648/j.ajmse.20200501.11

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  • @article{10.11648/j.ajmse.20200501.11,
      author = {Vrinda Almadi and Anmol Saxena and Sarvjeet Herald},
      title = {New Open Digital Marketplaces: Giving Buy, Sell and Trust Control Back to Users},
      journal = {American Journal of Management Science and Engineering},
      volume = {5},
      number = {1},
      pages = {1-9},
      doi = {10.11648/j.ajmse.20200501.11},
      url = {https://doi.org/10.11648/j.ajmse.20200501.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajmse.20200501.11},
      abstract = {Companies such as Amazon, Flipkart, Zomato, Oyo and Uber which we refer to as Digital Marketplaces are globally emerging across different business sectors. These marketplaces connect buyers and sellers and the marketplace owners act as central trustworthy authority to provide trade assurances. However, such a trust model could be problematic. Without any alternatives, rapidly growing users of the marketplace, both buyers and sellers are forced to trust the marketplace owner to satisfy their needs. Regulating users, control over digital transactions, exercising autonomy are other issues to name (but) a few indicating that marketplace owners are transparently replacing governments. In our view, Digital Marketplaces should be democratic as the markets in the real-world and control must be given back to the users since they are the contributors in the growth of these marketplaces. This paper presents a new way of Open Digital Marketplaces that model real-world buyer and seller interactions. Proposed solution involves users of marketplace as partakers in a digital transaction for connecting buyers and seller with trade assurances by leveraging their personal connections. Trust is made localized and the supply chain becomes subjective to the user as in the real-world. Switching the role of marketplace owner with the users, eliminates the need for trusting the marketplace owner as a central authority as well as diminishes autonomy and authority of the marketplace owner over the digital transactions. Users, with whose efforts trade is made digitally successful, are rewarded with an incentive, a type of shareholding in the digital transaction, as per the electronic contracts digitally signed by participants before executing the transaction. Disputes or violations of contract are resolved by an automated system, can also be escalated to an independent body or to a local court for a decision. Feedback received from the experiment based on the implementation of the proposed solution suggested ease of doing business by small businesses as well as increase in revenue. It also creates new opportunities for users to earn revenue share in digital transactions, instead of only the marketplace owners, in the emerging gig economy.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - New Open Digital Marketplaces: Giving Buy, Sell and Trust Control Back to Users
    AU  - Vrinda Almadi
    AU  - Anmol Saxena
    AU  - Sarvjeet Herald
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    PB  - Science Publishing Group
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    AB  - Companies such as Amazon, Flipkart, Zomato, Oyo and Uber which we refer to as Digital Marketplaces are globally emerging across different business sectors. These marketplaces connect buyers and sellers and the marketplace owners act as central trustworthy authority to provide trade assurances. However, such a trust model could be problematic. Without any alternatives, rapidly growing users of the marketplace, both buyers and sellers are forced to trust the marketplace owner to satisfy their needs. Regulating users, control over digital transactions, exercising autonomy are other issues to name (but) a few indicating that marketplace owners are transparently replacing governments. In our view, Digital Marketplaces should be democratic as the markets in the real-world and control must be given back to the users since they are the contributors in the growth of these marketplaces. This paper presents a new way of Open Digital Marketplaces that model real-world buyer and seller interactions. Proposed solution involves users of marketplace as partakers in a digital transaction for connecting buyers and seller with trade assurances by leveraging their personal connections. Trust is made localized and the supply chain becomes subjective to the user as in the real-world. Switching the role of marketplace owner with the users, eliminates the need for trusting the marketplace owner as a central authority as well as diminishes autonomy and authority of the marketplace owner over the digital transactions. Users, with whose efforts trade is made digitally successful, are rewarded with an incentive, a type of shareholding in the digital transaction, as per the electronic contracts digitally signed by participants before executing the transaction. Disputes or violations of contract are resolved by an automated system, can also be escalated to an independent body or to a local court for a decision. Feedback received from the experiment based on the implementation of the proposed solution suggested ease of doing business by small businesses as well as increase in revenue. It also creates new opportunities for users to earn revenue share in digital transactions, instead of only the marketplace owners, in the emerging gig economy.
    VL  - 5
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