There's no way Ebay can compete against free auctions on a service that at least doesnt go down every few days. The users will slowly move away from ebay to Amazon, and once critical mass is reached, ebay will be out of business. End of story!
Let me get this straight. You are predicting amazon will win in auctions, right? You realize of course that auctions are amazons weakest market with the strongest competition coming from ebay (compared to say, etoys, bnbn, cd-now, or wal-mart). Therefore, applying the least upper bound theory of mathematics, where auctions represent the least upper bound, you have inherently admitted that amazon will win in the other areas: books, toys, cd/video, and electronics.
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