Economics of Web Based Business (Contd.)

• Costs Associated With Bounded Rationality
  • Vast Information Resources (Also Information Overload)
  • Importantly, More Of The Organization Becomes Externally Oriented
  • Collective Information Processing Capacity Of The Organization Increases
• Costs Associated With Opportunism
  • Reduction Not By Altering Human Nature But By Reducing Information Impactedness
  • Reduced Profits In The Value Chain, Reduced Cost To Customer
  • Smaller Pie For An Industry, But Number Of Pies Will Increase!
  • Will Help Busisnesses Move Towards The Ideal Of Perfect Competition(?)
  • An Innovation That Custs Costs And Raises Productivity Increases Economic Well-Being
  • Romesh Diwan, Professor Of Economics At Rensselaer Has His Doubts

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  Conference Presentation (Somendra Pant)