Online-Trade's Analysis of Decentralized Network Based on Cybermediary: A Case Study of Taobao.com

The role and influence that cybermediaries play in transforming various market places is an important area for research. This paper presents an analysis of transaction cost during three important stages associated with online trading, and the benefits of a cybermediary (an intermediary) in open decentralized market models compared to direct exchanges. The TaoBao.com's practice is used to demonstrate that decentralized network models with cybermediary can be effective to reduce uncertainty, trade risk and recessive cost for e-commerce trading.