Market Structure in the Network Age

Abstract

E-commerce will undoubtedly change the way business is done. But as we have said elsewhere, “technology changes, economic laws do not. ” Despite the changes introduced by e-commerce, many of the fundamental principles of competition will still be relevant. In this paper I investigate three aspects of competition in ecommerce: marketing, interconnection, and price matching. In each case I will describe the phenomenon, illustrate its relevance for ecommerce, and describe some research issues raised.

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