ABSTRACT Owing to the negative effect from ¡§Internet Bubbling¡¨, electronic commerce doesn¡¦t seem to be prosperous like before. But relevant researches indicate that ¡§Internet ticket agency¡¨ will be the most profitable business in e-commerce in the future. As a result, this thesis wants to study the operation of the Internet ticket agencies in Taiwan. Collecting related documents and interviewing ticket agencies in order to understand the real operation situation of ticket agencies in Taiwan. Then discuss the impact of Internet on the ticket industry. Utilizing Williamson¡¦s transaction cost economics, this thesis analyzes the transaction cost between traditional and Internet ticket agencies. And concluding six topics below from these observations and analyses: 1. There is a serious impact of the Internet on the ticket price structure, and reduces the profits of ticket providers. 2. Internet ticket agencies must provide more value-added service in order to attract more customers. 3. Self-conducting Internet personal ticket distributor will withdraw from the market. 4. Air companies will expand the existent alliances relationship on Internet ticket market, and have dominant competitive advantage on personal ticket selling. 5. Internet ticket agencies will cooperate with other companies from different industry. 6. The Internet technology will not be the key factor of competitive advantage.