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To: H James Morris who wrote (92550)	1/29/2000 10:42:00 PM
From: Victor Lazlo	Respond to of 164684

HJ I think the only reason the airlines participate with pcln is to get their stock. Otherwise they could just do everything pcln does themselves, as your experience shows. Victor

To: H James Morris who wrote (92550)	1/30/2000 6:43:00 AM
From: Tom Clarke	Read Replies (3) \| Respond to of 164684

Did you happen to notice the author of the CNBC article is Assistant Professor of Economics at Smith College? Maybe I'm biased, but that should give us pause. It spins fairly positive for a "negative" story, though: This means that priceline.com should succeed even though its reverse auction is better for sellers than consumers. The disadvantage to consumers is subtle, and even if they grasp it, consumers are probably still better off at priceline.com than at traditional stores. Furthermore, sellers have control over how their products are sold and will greatly desire a process that reduces price competition. So priceline.com will prosper not only because it helps sellers but also because it has a significant first mover's advantage, stronger even than eBay Inc.'s. PCLN is about building a brand name and customer loyalty more than it is about plane tickets.