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Technology Stocks : eBay - Superb Internet Business Model
EBAY 91.20-3.4%Jan 30 3:59 PM EST
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To: Bill Harmond who wrote (3083)5/2/1999 10:28:00 PM
From: Stewart Elliot  Read Replies (1) of 7772
 
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Quite the opposite. The site benefits from the principle of nework effects. The more users there are, the more attractive the exchange becomes. Just like the telephone.The first phone was worthless, the second had value because there was someone to call, the third still more valuable, etc.

Have you tried the search feature?
<<

you missed my point. For example, having 50 beanie babies of one type might be alot better than 25, but 100 will probably have less of a relative impact on the potential buyers - there comes a point where there is more than enough selection: searching has no value (in fact, searching can be a nightmare if the selection is too large). Sure, there are "one-of-a-kinds" that may only be available on ebay, but at the end of the day, 90% of the people are looking for a relatively mainstream set of items. If they're not, they're probably searching all of the auction sites anyway.

ebay dominates - there's no doubt about it. but other sites will eventually hit a critical mass of buyers and sellers to make them competitive and force ebay to make decisions about lowering pricing and/or increasing value at the cost of squeezing margins - every market experiences it, and there's no reason to believe that ebay will be immune to this standard market behavior.
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