By Éric Brousseau, Nicolas Curien
How are our societies being remodeled by means of net and electronic economics? This booklet offers an obtainable advent to the economics of the web and a complete account of the mechanisms of the electronic economic climate. prime students study the unique fiscal and enterprise versions being constructed due to the net approach, and discover their influence on our economies and societies. Key matters are analysed, together with the improvement of open resource software program and online groups, peer-to-peer and on-line sharing of cultural items, digital markets and the increase of latest info intermediaries, e-retailing and e-banking. the quantity examines how net and electronic economics have reworked the association of organisations, industries, markets, trade, modes of distribution, funds, finance, and innovation techniques, and offers the analytical instruments to appreciate either those contemporary modifications and the most likely destiny instructions of the 'New Economy'.
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Additional resources for Internet and Digital Economics: Principles, Methods and Applications
On the one hand, the differentiation of baskets of goods and services tends to reduce the degree of competition in prices by creating niche markets. On the other, because it presents more interproduct economies of scope than economies of scale in relation to the size of the audience, infomediation should eventually lead to the coexistence of several ecosystems rather than a merciless struggle of the winner-takes-all type. Such a reconstruction of the value chain is a process that is greatly “path dependent” and many uncertainties remain as to implementation.
This growing gap between the place where the value is generated, through the constitution of an audience, and the place where this value is collected, through the sale of advertising space, of derived products, or through an intermediation commission, seems to definitely be one of the major characteristics of the digital economy: an economy in which the fixed costs upstream are increasingly financed downstream at the end of a value chain in constant extension. The second question, that of demand’s piloting of supply, as it is raised by the increasing informational requests of economic agents, finds its natural solution in resources provided by the ICTs.
In practice, e-mail servers carry out these operations. Unlike user terminals, the servers are permanently connected to facilitate data flows. Similarly, when consulting a website, the visitor sends a request to a computer in which information is stocked. The information server sends back HyperText Markup Language (HTML) codes to the client that enable the computer to re-build pages on the client’s screen. Generally speaking, independently of the application being considered, requests and responses are broken down into data packets, which their senders and recipients identify and which circulate within the network where they are relayed by routers.