Kiel Working Papers, Kiel Institute for World Economics
No 949:
The Internet's Economic Challenges
Andreas Gröhn
Abstract: Some observers regard the Internet as the driving force of
the recent economic upswing. So far, each innovation has first been used to
substitute for old technologies. Only over time people have started to find
new applications for a specific innovation. Only gradually they did take
full advantage of the new technology. The same might be true for electronic
commerce. The first examples of e-commerce might have been very close to
the brick and mortar shops they were intended to replace. Only gradually,
e-commerce will take full advantage of the Internet's possibilities. The
aim of this paper is to describe the characteristics of this new economy
and to pinpoint economic challenges.
JEL-Codes: D400; L860; (follow links to similar papers)
30 pages, September 1999
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