Consumer Surplus in the Digital Economy:
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Title: Consumer Surplus in the Digital Economy:

Essay Details:

Subject: Technology
Author: Allen J
Date: November 2, 2011
Level: University
Grade: B
Length: 35 / 10341

Essay text:

While efficiency gains from increased competition significantly enhance consumer surplus, for instance, by leading to lower average selling prices, our present research shows that increased product variety made available through electronic markets can be a significantly larger source of consumer surplus gains. One reason for increased product variety on the Internet is the ability of online retailers to catalog, recommend, and provide a large number of products for sale. For example, the number of book titles available at Amazon.com is more than 23 times larger than the number of books on the shelves of a typical Barnes & Noble superstore, and 57 times greater than the number of books stocked in a typical large independent bookstore...

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