Lindbeck, Assar () (Institute for International Economic Studies, Stockholm University) Wikström, Solveig () (School of Business, Stockholm University)
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This paper discusses how ICT and emerging electronic commerce in consumer products influence the relative efficiency in production of households and firms, resulting in changes in the division of tasks between these two types of agents. Increased information and competence of households, in combination with stiffer competition among firms, will also increase the power of households relative to firms, at least in a long-term perspective with free entry of firms. Households will also get more powerful channels to influence firms directly, i.e., beside the indirect influence via market trans-actions. We point out that this will result in various counter-reactions by firms, includ-ing increased differentiation of products and prices. Finally, we briefly consider various limitations and obstacles to electronic commerce in a long-term perspective.
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Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number
677.
Length: 29 pages Date of creation: 01 Oct 1999 Date of revision: Handle: RePEc:hhs:iiessp:0677
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Find related papers by JEL classification: D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation D40 - Microeconomics - - Market Structure and Pricing - - - General D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
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