Expansion of e-commerce

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How does Network Effect (sometimes also called network externality - not exactly same though) has helped expansion of E-commerce? How far does this effect explain the runaway success of firms like Amazon and E-Bay? Will this effect always remain beneficial and expansive for E-commerce or are their constraining factors that are shaping up as consumers engage in e-commerce now?

RESEARCHING THE TOPIC...write 3 detailed paragraphs at least to explain.

Reference no: EM131032310


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