Digital Economics

Digital Economics

Digital technology is the representation of information in bits. This technology has reduced the cost of storage, computation, and transmission of data. Research on digital economics examines whether and how digital technology changes economic activity. In this review, we emphasize the reduction in...

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Bibliographic Details
Published in:Journal of economic literature Vol. 57; no. 1; pp. 3 - 43
Main Authors: Goldfarb, Avi, Tucker, Catherine
Format: Journal Article
Language:English
Published: Nashville American Economic Association 01-03-2019
Subjects:
Costs
Digital technology
Economic activity
Economic models
Information technology
Tracking
Transport costs
Transportation
Verification
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Description
Summary:Digital technology is the representation of information in bits. This technology has reduced the cost of storage, computation, and transmission of data. Research on digital economics examines whether and how digital technology changes economic activity. In this review, we emphasize the reduction in five distinct economic costs associated with digital economic activity: search costs, replication costs, transportation costs, tracking costs, and verification costs.
ISSN:0022-0515
2328-8175
DOI:10.1257/jel.20171452