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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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