In industrial economy, most prices are fixed by the seller, who publish a catalog with non negotiable prices.

In the new economy, there has been significant shift in economic power from the seller to the buyer. On the Internet this truism is evident in the rapid rise of “reverse” or buyer driven.

Increasingly, dynamic price setting mechanisms are being used by many B2B exchanges for B2B transactions, because the Internet’s ability to interconnect companies cheaply means that an Internet Exchange can bring together bids and offers from all over the world.