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The Economics of New Media

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The rise of New Media associated with the Internet has radically changed many aspects of daily life, and enabled us to do things that would have seemed unimaginable even a few decades ago. The speed and volume of communications has increased by a factor of a million or more since the Internet first emerged in the 1990s, and there has been a corresponding proliferation of information. Yet the economic implications of New Media are hard to discern. The famous observation of Robert Solow (1987) that ‘You can see the computer age everywhere but in the productivity statistics’ is just as valid today as it was when he first made it more than twenty years ago.The age of new media has produced only a handful of profitable new companies (Amazon and Google are the most notable examples). At the same time, while old media (newspapers, TV, radio) have proved more resilient than many observers expected, their business models have been severely undermined. This chapter will discuss what economics can tell us about New Media. More interestingly, perhaps, at least to those concerned with the long-term impact of New Media, it will examine the implications of New Media for economics and economic organization, and offer some policy recommendations.

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Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Australian Public Policy Program Working Papers with number WPP12_1.

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Date of creation: Apr 2012
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Handle: RePEc:rsm:pubpol:12_1

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  1. Quiggin, John, 2005. "Blogs, wikis and creative innovation," Risk and Sustainable Management Group Working Papers, University of Queensland, School of Economics 151511, University of Queensland, School of Economics.
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Cited by:
  1. Quiggin, John C., 1991. "Salinity Mitigation in the Murray River System," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 59(01), April.
  2. Hasan, Lubna, 2002. "Revisiting Commons – Are Common Property Regimes Irrational?," MPRA Paper 8316, University Library of Munich, Germany.
  3. Quiggin, John C., 2001. "Environmental economics and the Murray-Darling river system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 45(1), March.
  4. Ahmed, Sadiq, 1991. "Fiscal policyfor managing Indonesia's environment," Policy Research Working Paper Series, The World Bank 786, The World Bank.
  5. Kazmierczak, Richard F., Jr. & Hughes, David W., 1996. "Reasonable Value And The Role Of Negotiation In Agriculture'S Use Of The Environment," Staff Papers, Louisiana State University, Department of Agricultural Economics and Agribusiness 31691, Louisiana State University, Department of Agricultural Economics and Agribusiness.

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