Comments on: Craigslist’s Business Model

By: Shasta Tune

Shasta Tune — Fri, 05 Mar 2010 14:56:47 +0000

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By: Assorted Links (8/27/2009) – Jim Garven's Blog

Assorted Links (8/27/2009) – Jim Garven's Blog — Thu, 27 Aug 2009 13:15:49 +0000

[...] Craigslist’s Business Model, by Donald MarronHere’s a quote from this essay (taken from Wired magazine’s article which Dr. Marron summarizes): “craigslist is one of the strangest monopolies in history, where customers are locked in by fees set at zero and where the ambiance of neglect is not a way to extract more profit but the expression of a worldview.” [...]

By: Andrew

Andrew — Wed, 26 Aug 2009 16:58:26 +0000

Very interesting post. I think Craigslist is a great example of the first mover advantage and network effect and that the other factors you mention, economies or scope and brand name, are important components of a first-mover advantage. As you point out, Craigslist has some real limitations. Craiglist’s ability to break into new markets is a good counterargument but I bet it reflects our national media market more than anything else, rather than being a sign that Craigslist’s simplicity and lack of features is what users would ideally want.