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

Ajit Kambil and Eric van Heck have written an authoritative and highly readable book illuminating the much-misunderstood world of online auctions. In clear, simple prose, the authors explain that the initial excitement over online markets was not all dot.com reverie and new economy hubris. Given that offline markets such as the Dutch flower auctions have thrived for centuries, it stands to reason that online markets will succeed to the extent that they improve on existing markets. "As you will read in subsequent pages, human beings have always made markets, and they will continue to do so in the future- even if business is conducted through cyberspace." Kambil and van Heck cut through the technical jargon all to common in "eBusiness" books, and elucidate very effectively why people participate in markets. They write: "…electronic markets are not technological interactions supported by humans. They are human interactions supported by technology." This quote exemplifies why this book is not just another poorly cobbled together ebiz how-to; it is a book about understanding how we will buy and sell in the future and how managers can avoid the outrageously expensive mistakes of the past few years. Success stories such as eBay and lesser-known eMarkets such as PartMiner are dissected to reveal what they did right, while spectacular flameouts such as Chemdex are shown to have lacked important ingredients for a good e-market recipe. There is a very good section dealing with how e-markets should be categorized which helps make sense of the galaxy of initiatives underway. There is a very insightful section on Knowledge Markets and how auctions for intangibles could become an important wave of future online commerce. All and all a great read and highly recommended.David Brett, CEO and Founder, Knexa.com

Yes, Virginia, there are still frontiers to be explored and conquered. The internet is a very active place, but still full of exciting opportunities. Feeling entrepreneurial or adventurous? You can create your own market on the net. The authors suggest that the future of exchange of products, services, and payment will accelerate in cyberspace. While the opportunities abound, there is a lot to learn . . . and there are risks. But, that's why you read a book like "Making Markets."First, some perspective. The authors emphasize that "electronic markets are not technological interactions. They are human interactions supported by technology." Ignore this principle and failure awaits you in the way it doomed the electronic markets in the 1990s. "Cyberspace markets cannot be thin replicas of the traditional market. Rather they must be as rich, complex, and compete as the traditional markets themselves." The basic trade processes of search, pricing, logistics, payment and settlement, and authentication must still be in place. Value must be created for all participants, and the electronic marketing venture must fit with the firm's other marketing vehicles. Creativity will have a significant influence on success. The authors begin with an explanation of the opportunities, the value of marketing in cyberspace. The first chapter includes an explanation of the design of their presentation in the remaining seven chapters. Chapter titles give us an insight into the content: From Place to Space, Making Markets Work, and Auctions: The Devil is in the Details. Readers will learn about Using B2B markets in the Supply Chain, Using Markets Creatively, and Market Tactics. Dynamic Market Strategies are address in the final chapter, followed by a call to action encouraging you to stick your toes in the water and try this approach.Each chapter is filled with education, insight, and mini-case studies to show us what has worked and what hasn't worked. You'll learn the jargon and the steps in the process. A good notes section, including website addresses, is complemented by a helpful index. And, expectedly, the authors offer a website for the book where more information and support is available. If you're ready to open your mind to some fascinating possibilities, curl up with "Making Markets."

As Ajit's student I got a very through conceptual understanding of e-markets by reading his book 'MAKING MARKETS'. He has presented one of his best works through this book that can add new dimensions to innovate businesses. I recommend this book to all the intellectual food seekers in technology and business innovation space.

Kambil and Heck have written an insightful and thought-provoking book on electronic markets. It is a must read for anyone who wants to understand online markets. They develop a framework to understand as well as to gauge the success of such markets based on in-depth study of several electronic markets. I particularly liked their characterization of B2B markets and its relationship to supply chain management. Their chapter on using markets creatively has ideas for both researchers as well as practitioners. The book has many examples, is written in a narrative style, and easy to read to three or four sittings.

As an entrepreneur and venture investor, I've found Making Markets invaluable because it's an excellent analytical framework for thinking about and creating markets. What is especially valuable is their Process/Stakeholder Benefit Framework which is elegantly simple yet so useful. I personally use that framework in examining various business models.I highly recommend this book!