In class we have used the example of eBay, Inc. as a firm that has achieved a dominant position in its market. What is the cause of its dominance?
A) eBay has achieved critical mass and has the strongest brand
B) eBay has achieved critical mass and has the lowest prices
C) eBay has achieved critical mass in a market with strong network effects
D) eBay has gotten lucky since its uses an easily copied website
E) All off the above are reasons for eBay's dominance

Question

Quizplus · Accepted Answer

eBay's dominance is primarily due to achieving critical mass in a market with strong network effects, where the value of the service increases as more people use it.

In Class We Have Used the Example of EBay, Inc