The Three Trends: Granularity, Behemoths and Cooperation

Swati Bhatt
Additional contact information
Swati Bhatt: Princeton University

Chapter 3 in How Digital Communication Technology Shapes Markets, 2017, pp 29-55 from Palgrave Macmillan

Abstract: Abstract The first trend, OR, has redefined markets and unbundled products, transforming economic units into granular structures which operate with fewer employees and intermediaries. Connections and data allow buyers and sellers to confront each other directly and transactional integrity is maintained by the pillars of social capital – trust, reputation, responsibility and rights. Agency costs of monitoring and incentivizing workers are lower due to disintermediation. The second trend is an agglomeration of transactions. This trend, enabled by network effects and the trading of attention across multi-sided markets, results in the concentration of economic activity around a few major hubs, the OB. Advertising emerges as a major player in these multi-sided markets. The third trend is a recalibration of the notion of competition.

Keywords: Multi-sided markets; Unbundling of consumption; Trust and reputation; US Census data; Economies of scale (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:paiecp:978-3-319-47250-8_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319472508

DOI: 10.1007/978-3-319-47250-8_3

Access Statistics for this chapter

More chapters in Palgrave Advances in Economics of Innovation and Technology from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().