E-Commerce I: Period of explosive growth in e-commerce beginning in 1995 & ending in 2000 Vision & Forces behind E-commerce I:1995-2000 1. Internet -> PC -> LAN 2. Start of Bertrand market where price,cost,quality of information is equally distributed where infinite set of suppliers compete against one another. Merchant have direct access to all relevant market information world wide 3. Use of Shopping Bot: Program automatically searches entire web for best prices and delivery times. 4. Cost of searching customer fall -reducing wastage of advertisement. 5. Reducing information asymmetry 6. Dis-inter mediation: Disappearance of market middle man [Distribution ,whole seller who are intermediates] "Displacement of market middle man who traditionally are intermediaries between producers and consumers by a new direct relationship between manufacturers and content originators with their customers. Essential Features 1. Friction- Free
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