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Revolutionary effects of new information technologies
- Source :
- van den Berg, G J 2006, ' Revolutionary effects of new information technologies ', Economic Journal, vol. 116, pp. F10-F28 . https://doi.org/10.1111/j.1468-0297.2006.01062.x, Economic Journal, 116, F10-F28. Wiley-Blackwell
- Publication Year :
- 2006
- Publisher :
- Wiley-Blackwell, 2006.
-
Abstract
- In markets with imperfect information and heterogeneity, the information technology affects the rate at which agents meet, which in turn affects the distribution of production technologies across firms. We show that in models for such markets there are typically multiple equilibria because reservation utility levels and the lowest production technology in use affect each other. The adoption of novel information technologies may then entail a revolution in the sense of a move from an inefficient to an efficient equilibrium. Inefficient production technologies are removed even in sectors where the new information technology has only recently been introduced. The effect is much larger than a marginal comparative-statics effect on a given equilibrium. The results apply to markets for consumer products, labour, intermediate goods, and (public) institutional services.
- Subjects :
- Economics and Econometrics
business.industry
jel:D83
Reservation
Perfect information
Distribution (economics)
Information technology
SDG 8 - Decent Work and Economic Growth
jel:D43
jel:J42
jel:L11
jel:L86
jel:L15
jel:O33
Price dispersion
Economics
Production (economics)
The Internet
heterogeneity
imperfect information
informational frictions
internet
price convergence
production technology
business
Industrial organization
Subjects
Details
- Language :
- English
- ISSN :
- 14680297 and 00130133
- Volume :
- 116
- Database :
- OpenAIRE
- Journal :
- Economic Journal
- Accession number :
- edsair.doi.dedup.....880eb86c7da691aa6fe22b85cd5e53f9