- Another Secondary Effect: Reconsider who's capturing the margins of a transaction.
- Middlemen are valuable to the transaction only if they are "Cheaper" then the equivalent functions found on the open market.
- It is no surprise that as technology reduces transaction costs in the open market, the role of middleman is coming under attack and the relationship amoung players is changing rapidly. (If buyers and sellers can find each other cheaply in the networked economy, who needs agents and distributors.)
- Middlemen who are not adding sufficient value relative to the open market are being cut out!
- The Middlemans Value is based on the existance of transaction cost.
- Middlemen are THE most vulnerable to the Killer App, distruptive technology, and the disintermediation resulting directly from technological change.
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