This document summarizes a research article that examines how transaction costs and goodwill trust influence the nature of business relationships between organizations in electronic markets. The article first reviews literature on how transaction cost economics has been used to analyze how information technology impacts relationships. It notes limitations of only considering transaction costs and discusses how incorporating the concept of goodwill trust can provide additional insights. The article aims to address both transaction costs and goodwill trust to better understand how internet-based electronic markets shape interorganizational relationships between collaborative and transactional models. It analyzes two case studies to describe the role of trust and transaction costs in these relationships.