Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Saturday, June 10, 2006

Let's Get Social


eBay + Kaboodle = Mycollectibles.

Not bad. A step in the right direction: these players are trying to tap the social to create value. But it also demonstrates another big theme these days: like most players, eBay and Kaboddle are still struggling with understanding just how the social creates value.

Here, "collectors" can also list items for sale; value is created, presumably, by the fact that search costs are slashed. Unfortunately, search costs on eBay aren't that high, so I'm not sure how effective this will be; at worst, it becomes a nice platform for sellers to cram with pseudo-spam.

There are three ways to make this model much better. The first is to shift from the social to the hypersocial (which this model won't really do). The second is to enable cultural value creation (which this model doesn't). The third is to rethink the transactions at the heart of this social market; right now, the transaction model doesn't really make too much sense (in fact, it's backwards).

Kudos for a first step; but my expectations for this aren't too high because the model isn't right from a strategic pov.

-- umair // 1:38 PM // 2 comments


Comments:

Am I not the only one who thinks eBay should acquire Second Life? Their aftermarket for �Everquest/World of Warcraft/Insert MMORPG Here� goods will eventually get arbitraged away if these players setup commerce systems internally like Second Life.
// Anonymous Anonymous // 2:49 PM
 

umair- can you please explain the diff between social and hypersocial?
// Anonymous Anonymous // 5:51 PM
 
 

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