One way I think about Amazon's economic model vs WalMart's is: Walmart stores in rural areas are sometimes thought of as natural monopolies, that is the area on

One way I think about Amazon's economic model vs WalMart's is: Walmart stores in rural areas are sometimes thought of as natural monopolies, that is the area only needs one superstore, so when Walmart is already there, it doesn't make sense for someone else to make the large investment necessary. So in those small towns, Walmart will always be the only name in town- a natural monopoly. It remains to be seen, but I think it's possible that online retail might be similiar. Amazon is building huge, advanced distribution centers in many areas. Will this be enough to allow Amazon to have a natural monopoly, not just for one rural area at a time like Walmart, but for the entire country / world? I think it's certainly possible.