EcoMist, March 2, 1996: "Many people believe that the Internet will make middlemen extinct. It is more likely to help them thrive." The Net's fans argue that it allows consumers to bypass intermediaries while increasing their choices and finding better bargains. One influential proponent of this idea is Bill Gates. Compelling as they seem, however, these arguments do not prove their case. Hal Varian, an economist at the UC Berkeley, claims there will be greater competition among intermediaries, and maybe many more of them. Instead of competing on the basis of inside information, those agents will compete by adding value in other ways. The Internet will put some intermediaries out of business, but it will create more work for others. And among these will be not only suppliers of familiar services, but also a new breed monitoring Internet sites, collecting news and information, and repackaging it -- folk, in other words, like Mr Gates. MTM_moi