Capitalism 2 and Capitalism Lab Forum

If you create an internet company such as social media or car booking, do you have to have one in each city to gain business from each city or does one created in one city cover the whole "world"?

Ty for any response.

Please see: https://www.capitalismlab.com/digital-a ... companies/

Revenue model: Advertising
When it comes to advertising, the key difference between an Internet company and an traditional media company is that access to Internet companies are not limited to geographic locations. Any users in any of the cities can access an Internet web site.

When a business advertises on an Internet company, the advertising effect will cover all the cities. On the other hand, the advertising effect of a traditional media firm is limited to the local city only.

If I am understanding this correctly, are you saying that if you have the same product being sold in 10 cities, if you advertise the product in just 1 of the 10 cities, all 10 cities will benefit from it and not just the 1 city where it is being advertised?

Lucy678 wrote: ↑Wed Apr 28, 2021 1:03 am If I am understanding this correctly, are you saying that if you have the same product being sold in 10 cities, if you advertise the product in just 1 of the 10 cities, all 10 cities will benefit from it and not just the 1 city where it is being advertised?

That's correct.

Thanks for the help and the additional questions.