Private electronic market
A private electronic market PEM uses the Internet to connect a limited number or pre-qualified buyers or sellers in one market. PEMs are a hybrid between perfectly open markets e.g. exchanges where there is no pre-existing relationship between buyer together with seller - similar to eBay as well as closed contract negotiations such(a) as a sealed bid tender, where there is no visibility between competitors and hence no response to competition. The core belief of PEMs is to clear believe competition among buyers/sellers while allowing buyers/sellers to recast all those aspects of the deal that are typically only dealt with in a negotiation. This creates a problem of "comparing apples and oranges": bids may be quite different in numerous dimensions and therefore cannot easily be compared. apart from the dimension of price these could increase pre-negotiated discounts e.g. for loyalty, particular qualities, combinations of goods and services with conditional pricing, freight differentials, contract fulfillment timing, payment terms, or deliberate constraints such(a) as market share limits.