Varian Argue That The Fundamental Principles

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Varian (1999) argues that the fundamental principles with regard to competition are very much relevant to the new economy considering the changes ushered by e-commerce. These principles include marketing, interconnection, and price matching. According to him, marketing is very much present in e-commerce since electronic retailers use versioning. Like loyalty programs and promotions to increase their market shares. Interconnection is also of the utmost importance as consumers want to be connected to as large a network as possible. Finally, intense price competition would also prompt merchants to look for ways to increase customer loyalty and adopt pricing strategies that reduce the intensity of competition (De Vera, 2004). In the other hand,
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