Electronic marketplaces are transforming traditional markets by leveraging information technology to enhance efficiency, reduce transaction costs, and improve economic outcomes for buyers, sellers, and society. Markets perform three main functions: matching buyers and sellers, facilitating transactions, and providing institutional infrastructure. Electronic marketplaces excel in these functions by enabling faster, more efficient, and cost-effective exchanges. Electronic marketplaces facilitate product offerings through personalization, customization, and the aggregation or disaggregation of information-based products. These technologies allow for more tailored services and products, improving seller effectiveness and buyer satisfaction. Additionally, they reduce search costs, enabling buyers to find products that better match their needs and leading to more efficient markets. Price discovery in electronic markets has evolved, with new mechanisms such as auctions and electronic negotiations allowing for more dynamic pricing strategies. These mechanisms enable sellers to charge different prices to different buyers, increasing profits while also benefiting consumers through lower prices and better product matches. Electronic marketplaces also improve logistics and delivery processes, reducing costs and enabling faster, just-in-time deliveries. They facilitate direct communication between buyers and sellers, reducing the need for traditional intermediaries. However, the role of intermediaries is not necessarily eliminated; instead, new types of electronic intermediaries are emerging to provide value through aggregation, trust, and information services. The impact of electronic marketplaces on competition is significant, as lower search costs promote price competition and reduce the monopoly power of sellers. However, this can also lead to increased differentiation of products and services, as sellers seek to compensate for lower search costs by offering more customized features and services. Overall, electronic marketplaces are driving greater economic efficiency and growth, creating new opportunities for intermediaries to add value for buyers and sellers rather than exploiting information asymmetries. While challenges remain, the potential for these markets to transform the economy is substantial.Electronic marketplaces are transforming traditional markets by leveraging information technology to enhance efficiency, reduce transaction costs, and improve economic outcomes for buyers, sellers, and society. Markets perform three main functions: matching buyers and sellers, facilitating transactions, and providing institutional infrastructure. Electronic marketplaces excel in these functions by enabling faster, more efficient, and cost-effective exchanges. Electronic marketplaces facilitate product offerings through personalization, customization, and the aggregation or disaggregation of information-based products. These technologies allow for more tailored services and products, improving seller effectiveness and buyer satisfaction. Additionally, they reduce search costs, enabling buyers to find products that better match their needs and leading to more efficient markets. Price discovery in electronic markets has evolved, with new mechanisms such as auctions and electronic negotiations allowing for more dynamic pricing strategies. These mechanisms enable sellers to charge different prices to different buyers, increasing profits while also benefiting consumers through lower prices and better product matches. Electronic marketplaces also improve logistics and delivery processes, reducing costs and enabling faster, just-in-time deliveries. They facilitate direct communication between buyers and sellers, reducing the need for traditional intermediaries. However, the role of intermediaries is not necessarily eliminated; instead, new types of electronic intermediaries are emerging to provide value through aggregation, trust, and information services. The impact of electronic marketplaces on competition is significant, as lower search costs promote price competition and reduce the monopoly power of sellers. However, this can also lead to increased differentiation of products and services, as sellers seek to compensate for lower search costs by offering more customized features and services. Overall, electronic marketplaces are driving greater economic efficiency and growth, creating new opportunities for intermediaries to add value for buyers and sellers rather than exploiting information asymmetries. While challenges remain, the potential for these markets to transform the economy is substantial.