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The ICT Revolution in Consumer Product Markets

  • Lindbeck, Assar

    ()

    (Institute for International Economic Studies, Stockholm University)

  • Wikström, Solveig

    (School of Business, Stockholm University)

New informationa and communication technology (ICT) makes consumers better informed about available products, product quality and prices, which mitigates problems of assymetry of information. The entry of firms is facilitated, competition and economic efficiency is boosted and the market powers of households is increased. Firms are likely to respond by increased product and price differentiation. There will also be considerable changes in the division of tasks between firms and households. But important obstacles to these developments are technological vulnerability, quality problems in the information of the Internet, cognitive limitations of individuals and weaknesses in the product-delivery infrastructure in connection with Internet trade.

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Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number 670.

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Length: 30 pages
Date of creation: 01 May 1999
Date of revision:
Handle: RePEc:hhs:iiessp:0670
Contact details of provider: Postal: Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden
Phone: +46-8-162000
Fax: +46-8-161443
Web page: http://www.iies.su.se/

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