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I really like this line

"The combination of "seems impossible" and "strong network effects" is about as close as you can get to the magic formula for incredible, sustainable success, as with eBay, Wikipedia, and Google."




Hrm...

Hal Varian says that Google doesn't have strong network effects working for it, and he might know a thing or two about it:

http://googleblog.blogspot.com/2008/02/our-secret-sauce.html

eBay certainly does, though.


I half agree. Classic network effect doesn't apply. But there is a sense of "that's where I can reach the most users".

Further, Varian's argument about knitting websites is a little off, since Adwords/Adsense effectively allows you to reach those customers via Google.




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