Consumer Surplus in the Digital Economy:

Essay specific features

 

Issue:

Technology

 

Written by:

Lowell A

 

Date added:

February 16, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

37 / 10341

 

Was viewed:

8562 times

 

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Essay content:

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...
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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. Our analysis indicates that the increased product variety of online bookstores enhanced consumer welfare by $731 million to $1...
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