Capital flows and concentrates in areas of value-creation and return on investment worldwide. Commercial Real Estate for Internet-based businesses. Economies of scope in CMGI in building holding company of complementary companies with assets that can be shared or leveraged across companies for benefit of the parent company. Internet economy layers now effect entire economy as a system. With marginal costs, prices reach zero and firms make no profit.
Network externalities conflict with principles of competition and allowing new entrants to market.
Intentionally created business alliances for possitive feedback effects. In mid 1998, the report showed that 65 million U.S. adults were using the Internet. Internet users are becoming more sophisticated in their use of the medium, with 77 percent of users sending e-mail with files or attachments every week, the report says. Users send an average of six e-mails a day, and over 20 percent of users have built or updated a Web page in the past three months. The number of U.S. Internet users is projected to reach 177 million by the end of 2003, according to International Data.