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The meteoric growth in on-line education has focused attention on virtual learning communities.• Critics suggest that the on-line learner suffers isolation resulting from diminished interaction with others and thus question the quality of the on-line educational experience.• A case study is presented of an American MBA programme at the University of Wisconsin-Whitewater that compares interactions in on-line and traditional learning communities.• Evidence is presented which suggests that on-line students score higher on measures of interaction than traditional students. Furthermore, interaction is important in predicting effectiveness of courses regardless of mode of delivery. This suggests that interaction can occur in on-line courses and is important in designing such offerings.