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Handbook on the Economics of the Internet by Johannes M. Bauer download in ePub, pdf, iPad

The Impact of the Internet on the Market Itself As mentioned previously, the economic principles of traditional markets still apply to the internet. One of the major factors impacting demand is the price of the product, which we saw from the previous section, the Internet has a hand in lowering. This book is recommended to scholars and practitioners engaged in research on economic processes of global Internet-enabled businesses.

Today studios have retreated to their core competencies. This topic deserves a comprehensive handbook, and the editors have delivered. The lowest price at which a firm can sell a good without losing money is the amount of money that it costs to produce it. The economic analysis of the digital economy has been a rapidly developing research area for more than a decade. This is a great resource for any modern scholar of the Internet.

At lower prices, consumers will demand more. You are not authenticated to view the full text of this chapter or article. It has been found that internet markets are more efficient than conventional markets with respect to average price levels, menu costs, and price elasticity Elberse et al.

One of the

One consequence of this is a lowering of transaction costs. In the following sections we will discuss some more specific ways that the internet has impacted the economy in terms of the supply and demand models previously studied.

Recall the section on comparative advantage and trade. One of the key factors that the internet has a hand is reducing the price of inputs for firms. Effects that were uncommon in the Industrial Economy network effects, switching costs, lock in, and unique cost structures are the norm in the Information Economy Varian et al.

Recall the section

The principles that apply to two countries can also apply to two companies. It offers a blend of theoretical and empirical works that are central to understanding the digital economy. However, despite the positive impact of the internet, internet markets are not nearly as efficient as theories would predict Elberse et al. Two things are making these possible.