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A Dynamic Growth Model for Focused Broadcasting over the Internet

As a significant segment of the Information Industries, classified advertising can be a prime example of how conventional businesses, rather than being simply transplanted to the New (digital) Media, may indeed be transformed for future growth. To be successful, such transformations must be able to take full advantage of the defining features of the emerging information infrastructure for innovative creation of economic value. Focused Broadcasting, a class of service for matching classified and want ads using the World Wide Web, is an approach that balances the push-pull dynamics of information over the Internet. Applying the concept of product introduction with complementary network externalities, a dynamic model is formulated to simulate the potential growth of such business in cyberspace. Robustness of the model is demonstrated.