Brokerage Industry Competitors Analysis in Brokerage Industry
Brokerage Industry Competitors Analysis in Brokerage Industry
Abstract
By acting as an intermediary between two (or more) parties, the broker earns a profit. An experimental biform game is used to test whether such an advantageous situation can persist if actors form strategic relationships. However, brokers can only enjoy an advantage if they do not face substitutes for the connections they offer or the value they can create, they are able to connect more than two parties, and interdependence does not lock them into a particular pattern of exchange when exogenous relations between actors are considered. Allowing actors to form relationships based on their expectations of their future value, on the other hand, results in profitable positions of intermediation only when strict unilateral action assumptions are made, however.
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Introduction
Today, one of the most active research areas in management is the influence of ongoing relations on exchange patterns and resource distributions within and among organizations. Recent studies have found, for example, that prior relations influence the recruitment, retention, and utilization of employees (Fernandez et al., 2000), the terms of exchange between buyers and suppliers (Kollock, 1994), and the patterns of trade between nations (Fernandez et al., 2000). (Ingram et al. 2005). Many cases have been documented in this large and growing literature in which existing relationships appear to favor some firms over others.
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Conclusion
What factors account for variation in firm performance? Can managers influence these factors? Such broad questions have many answers, and we would not attempt to cover them in a single paper. The position of a firm (or other economic actor) as an intermediary in a relational network — whether that network represents sourcing relations, alliances, syndicated investments, joint ventures, or some other form of collaboration or exchange — is one potential source of competitive advantage.
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