Android :: Possible To Setup Open URL For Application?

From this article:
http://developer.android.com/guide/publishing/publishing.html#marketintent
Android Market could be invoked by an ACTION_VIEW intent with URL like
http://market.android.com/details?id=<packagename>

How does it work? Is the market.android.com return some info to browser to help it open the Android Market application? or just the browser locally does the trick? Is it possible to set up an open URL who could do the same thing? For example, I have an app called MyBooks(com.mybooks.app) and a site like:
http://www.mybooks.com
an url could be
http://www.myboos.com/details?id=0001
And when Browser opens this url, the site will return some kind of pre-defined response, which might contains an Intent action string, like "com.myboos.app.action.VIEW" and the queried id 0001.

Browser could then try to start an Activity using that action
"com.mybooks.app.action.View",
if there is an Activity for that, start it and pass the id in. If not, it tries to connect another URL like
http://www.myboos.com/details?id=0001&installed=false
Is this possible to work on any version of the Android?