The Research Of The Revolution Of Transaction Mode In E-business Times Based On Search Cost Theory

This paper makes an economic analysis on the revolution of transaction mode in the e-business times from the perspect of search cost.This paper first studies the research results of domestic and foreign scholars on the transaction,transaction mode,space competition,search theory and other aspects,and then I have a deep analysis and discussion on changes of transaction mode in the e-business era.The article analyzed the influence of the Internet technology on the change of search cost on the change of retail transaction and wholesale transaction.In this paper,the Salop Ring Market Model and the Fixed Sample Search Model are used to analyze the process of e-commerce vendors and transaction information service providers,and then three cases,Chi Cheng Holdings Limited,Yiwu Small Commodity City Group Co and Zhejiang Cornucopia Electronic Commerce Limited are analyzed.The research outcome of this paper is that the development of the internet technology has a great influence on search cost,that leads to a competitive adavantage which directly leads to the revolution of transaction mode.The main contribution of this paper is that I put forward the 5W1H research framework of transaction mode,the framework contains six dimensions;the seccond contribution is that I have a deep development of the Salop Ring Market Model and set up a new equilibrium model which named Rippling Market Equilibrium Model;the third contribution is a new research route,the research route stems from the exogenous technology to the Change of Transaction Cost,and then to the Change of Transaction Mode,and gets to the Process of Circulation Modernization study at last.The shortcoming is that the model can not be analyzed by large sample.