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.
Russ Roberts talks with Chris Anderson of Wired Magazine about the ideas in his new book, The Long Tail: Why the Future of Business is Selling Less of More. Topics include the weird world of internet distribution and production, how the Sears catalog of the 1890s was the predecessor to Amazon books in the 1990s, the economics of choice and the role of filters, and the challenges of wrapping our minds around emergent phenomena.