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E-commerce (technology includes (ubiquity, global reach, social technology…

- - - - Marketing costs remain the same (pricing highly variable)
      - Cost of producing first unit almost entire cost
        of product: marginal cost of 2nd unit is about zero
      - Goods that can be delivered over a digital network
      - Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc.)
      - Costs of delivery over the Internet very low
  - - - Transaction costs
      - Information asymmetry
      - Search costs
      - Menu costs (merchants costs of changing prices)
    - - Dynamic price based on market conditions
      - Disintermediation (removal of organizations, layers in value chain)
      - Price discrimination