eBay Business Model

by Steve Sturtz

 

If you Google eBay business model, you will find all you want to know about starting you own auction site if you choose. Remember the corporate history of eBay. It was started by computer guys as a social experiment to see if buying and selling would become more efficient with a market which had more "transparency." By definition eBay is an efficient market.

 

For a thorough understanding of this market, you need to understand how the Over-the -counter market (OTC/NASD) and its clearing corp. work since eBay is so similar.

 

 

The Sherman Anti Trust Act will answer most of the monopolistic questions, while the definitions of a monopoly and an oligopoly will answer the question of size and control of any particular industry.

 

Good luck to those who step into the shark invested waters of starting a new market. If you choose I will put you in contact with a brilliant man who is trying to start a "third market" "(OTC) trading of listed commodity futures. I would also suggest that you go back to the early 70s and become familiar with a bill before the Congress. It was Bill HR5050 (if memory serves) dealing with "third market" regs for "OTC trading of listed securities."

 

All of the markets NYSE, AMEX, CBT,Chi Merc, CBOE, OTC, Paris Bourse, etc. are based on the premise that equilibrium can be found by bringing all the buyers and sellers together in a compressed time and space. And yes I have been on the floor of all of these exchanges and executed trades on two of them. SNO