In this paper hypotheses concerning the success of digital market places for agricultural inputs and products are tested. The hypotheses were derived from transaction cost considerations. Success of digital market places was measured in two ways: (i) the probability for a digital marketplace to survive the competition from conventional and other digital market places and (ii) various metrics of market activity such as the number of hits received, number of incoming links, and page views per visitor session. Data were obtained from a survey of 233 digital market places that had been installed to serve the agricultural and food industries.