Information Systems and Economics
Do big dollar expenditures on information systems pay off? Friction-free: is that what we really want markets to be? Is it time for consumers to say goodbye to fixed pricing? The Internet creates an environment in which the cost of buyer-seller interactions is cheaper than ever, and consumers can pa...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
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Institutional Knowledge at Singapore Management University
1998
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| Online Access: | https://ink.library.smu.edu.sg/sis_research/2742 https://ink.library.smu.edu.sg/context/sis_research/article/3742/viewcontent/280324.280329_pvoa.pdf |
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| Institution: | Singapore Management University |
| Language: | English |
| Summary: | Do big dollar expenditures on information systems pay off? Friction-free: is that what we really want markets to be? Is it time for consumers to say goodbye to fixed pricing? The Internet creates an environment in which the cost of buyer-seller interactions is cheaper than ever, and consumers can participate in the price-setting process—revealing their willingness to pay—making it the most efficient one-on-one selling environment anywhere, approaching the efficiency of the financial markets. In fact, such transformation is evident throughout the information economy. We see it in the approximately 1,000% annual network growth rates expected by some Internet service providers’ senior executives. We also see it in the continued rapid formation of information technology capital in many industries worldwide. And it’s evident in the thinking of senior managers who must assess whether computers and the software applications that run on them are pulling their weight in value for their firms. |
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