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Digital technology is the representation of information in bits. This technology has reduced the cost of storage, computation, and transmission of data. Research on digital economics examines whether and how digital technology changes economic activity. In this review, we emphasize the reduction in five distinct economic costs associated with digital economic activity: search costs, replication costs, transportation costs, tracking costs, and verification costs. (JEL D24, D83, L86, O33, R41)
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Avi Goldfarb
University of Toronto
Catherine E. Tucker
IIT@MIT
Journal of Economic Literature
Massachusetts Institute of Technology
University of Toronto
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Goldfarb et al. (Fri,) studied this question.
synapsesocial.com/papers/69d73aadb54ccf0cfef30972 — DOI: https://doi.org/10.1257/jel.20171452
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