The Long Tail and the Power Law in Digital Marketplaces

This chapter explores the concept of the long tail in digital marketplaces, where companies can offer a wide variety of products at low costs. It discusses how platforms like Amazon and Netflix tap into the demand for niche products, which were previously underserved in traditional marketplaces. The chapter also compares the business models of Amazon and eBay, highlighting their fulfillment processes and the impact of the internet on the media business.