Abstract | One big potential benefit of the webservices paradigm is in reducing the costs of inter-firm business transactions. That should allow small and medium-sized enterprises to compete successfully with big firms. This paper considers specifically the economic needs of peer-to-peer business alliances, defined as multiparty business alliances which are not under the control of any single firm or any small group of alliance members, so that each participating firm has full economic liberty. This organisational form is appropriate for example for Free Software businesses. The main conclusions are that achieving economic observability of business transactions is of great importance, and that this is difficult to achieve with the Remote Procedure Calls paradigm of JINI or XML / HTTP / SOAP based webservices. The problem can be overcome by using the SXDF / QQP / QRPC suite of webservice protocols,
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