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One way to understand Reed's Law is to see it as a tool for quantifying the way in which Internet communities and exchanges can generate value that goes far beyond just the one-to-one transactions of traditional networks.
The explanatory power of Reed's Law is particularly illustrated by the insights that it provides into the divergent trajectories of three seemingly similar online initiatives: online classifieds ventures and the Onsale and eBay auction businesses.
An understanding of the power of Reed's Law and the group-forming effect also points to a number of steps and strategies.