Not everyone agrees that all of our country's legendary breakups were successful, the airlines being a quite notable example and telephone service still much a matter of where you are located. So before you agree on a breakup you have to agree that something truly is a monopoly and that a breakup is the most appropriate response.
Ebay has some of the India of a monopoly but it is not that clear to me that it has enough. At the moment, a large proportion of its transactions are simply exchanges at an alternative on-line location. The fact is there are many smaller on line alternatives, like Craig's list, depending on your region. Moreover, with the simplicity of creating a web page and the increasing sophistication of search engines, anyone can list their items with their own rules. I also think we will see increasing examples of specialized on-line transaction sites (auction is really a misnomer for Ebay and most others), like the planned TF alternative, which I look forward to enjoying.
I agree with you there, Spitfrnd, that's where eBay is now, but that is after it's development from its original format as an online auction site. That's what I'd like to see, a rival site that focuses on secondary market transactions, so, an online auction and flea market, where prices ultimately are determined by two factors-the seller's asking price, and the buyer's offer that the seller accepts. eBay has morphed from that format into an online department store, through heavier emphasis on dealer shops and use of "Buy It Now". I think the statement that "eBay wanted to be Amazon.com" is accurately descriptive of what happened to the site.
I agree with you, too, about whether it's correct to identify eBay as a monopoly in the strictest sense, the Econ 101 sense of the word. In terms of the total potential market, eBay is probably not a true monopoly. It's rather the 800-lb gorilla in the living room, the largest such company offering the services that it does. But it has no real competition, which in the
Volksmund, the vernacular, makes most people consider it a monopoly. I think eBay is a target that someone with some
cojones could take on and defeat.
As with Pete and Shannon's effort to launch the Treefrog auction site, maybe we'll see more of the specialty markets that currently are served by eBay splinter off with their own sites. That's what I'd like to see-not just another toy soldier site, but other auction/flea market sites, that focus just on those kinds of transactions, with reasonable rules that protect both sides of the transaction, the seller and buyer, and that don't try to fix what isn't broken.
Prost!
Brad