e-Commerce: Business-to-Government

Business-to-government (B2G) e-commerce involves transactions between private firms and corporations and the state using the Internet. B2G e-commerce differs from business-to-business and business-to-consumer e-commerce in several respects, the most notable of which is that the state is a nonprofit entity and the only buyer for many sellers. This market structure, known as monopsony, limits competition. Moreover, political connections often come into play in B2G e-commerce, including corruption, and distorting market signals and prices. In addition to national governments, many provincial and municipal ones have adopted B2G e-commerce as well. This entry further describes B2G e-commerce and gives some examples.

B2G e-commerce encompasses a variety of activities, including Internet access to government forms and documents; online requests for proposals; Internet-based vetting of vendors; applications for corporate permits, ...