Seminar Papers, Institute for International Economic Studies, Stockholm University
The ICT Revolution in Consumer Product Markets
() and Solveig Wikström
Abstract: New informationa and communication technology (ICT) makes
consumers better informed about available products, product quality and
prices, which mitigates problems of assymetry of information. The entry of
firms is facilitated, competition and economic efficiency is boosted and
the market powers of households is increased. Firms are likely to respond
by increased product and price differentiation. There will also be
considerable changes in the division of tasks between firms and households.
But important obstacles to these developments are technological
vulnerability, quality problems in the information of the Internet,
cognitive limitations of individuals and weaknesses in the product-delivery
infrastructure in connection with Internet trade.
Keywords: information technology; consumer goods markets; household production; competition; pricing; assymetric information; (follow links to similar papers)
JEL-Codes: D13; D40; D80; L10; (follow links to similar papers)
30 pages, May 1, 1999
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