Interesting analysis done on the economics of Web 2.0 through the lends of the Skype / Ebay deal.
For me, this is the money quote:
More simply, Web 2.0 is about the shift from network search economies, which realize mild exponential gains - your utility is bounded by the number of things (people, etc) you can find on the network - to network coordination economies, which realize combinatorial gains: your utility is bounded by the number of things (transactions, etc) you can do on the network.
So in a very real sense, it is no longer who you know but what you can do which will be the driving factor in the next few years of Web advancement.
Posted by Josh at September 13, 2005 01:14 PM