Worldwide auction leader eBay started operations in Japan just five months after Yahoo! launched its Japanese auction service. But eBay was never able to mount a credible threat and ended up pulling out of the market. This example shows that: a) online auction markets are characterized by constant shifts in market dominance. b) firms should always subsidize initial adoption of their products and make them cheaper than their competitor's products. c) national markets tend to be influenced by factors that are not necessarily localized. d) market dominance in the global marketplace translates to an equivalent position in national markets. e) it's imperative to move first in markets influenced by network effects.

Question

Gavyn Norris

Business

3 December, 14:22

Worldwide auction leader eBay started operations in Japan just five months after Yahoo! launched its Japanese auction service. But eBay was never able to mount a credible threat and ended up pulling out of the market. This example shows that: a) online auction markets are characterized by constant shifts in market dominance. b) firms should always subsidize initial adoption of their products and make them cheaper than their competitor's products. c) national markets tend to be influenced by factors that are not necessarily localized. d) market dominance in the global marketplace translates to an equivalent position in national markets. e) it's imperative to move first in markets influenced by network effects.

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Velez · Answer 1

e.

Explanation:

it's imperative to move first in markets influenced by network effects.

Because, the ability to reach larger numbers of people depend on the effect of network coverage.