Business Intelligence

The Economics Of Internet Markets

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Executive Summary

The internet has facilitated the creation of new markets characterized by large scale, increased customization, rapid innovation and the collection and use of detailed consumer and market data. The author describes these changes and some of the economic theory that has been useful for thinking about online advertising markets, retail and business-to-business e-commerce, internet job matching and financial exchanges, and other internet platforms. The author also discusses the empirical evidence on competition and consumer behavior in internet markets and some directions for future research.

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