digital economicsdigital technologyreplication costssearch costsverification costs
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Abstract (AI)
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. (JEL D24, D83, L86, O33, R41)
Key Findings
1
Digital economics research examines whether and how reduced digital-technology costs change economic activity.
2
Digital technology reduces the costs of storing, computing, and transmitting information by representing it in bits.
3
The review identifies five distinct costs reduced by digital economic activity: search, replication, transportation, tracking, and verification costs.
Research Object
Digital technology (representation of information in bits)
Research Subject
the effects of digital technology on economic activity through reductions in search, replication, transportation, tracking, and verification costs
Publication Details
Publication Date
2019-03-01
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