Markets/Varian/Shapiro: information markets are not like competitive markets, markets in which there are many suppliers offering similar products, each lacking the ability to influence prices.
Characteristics of an information market:
1.The dominant firm (…) may or may not produce the “best” product, but by virtue of its size and scale economies it enjoys a cost advantage over its smaller rivals.
2. In a differentiated product market we have a number of firms producing the same “kind” of information, but with many different varieties.
Taken from: Information Rules
Shapiro, Carl. Information Rules: A Strategic Guide to the Network Economy Harvard Business Review Press. Kindle Edition._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Hal R. Varian
Information Rules: A Strategic Guide to the Network Economy Cambridge, MA 1998