NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Digital Economics

Avi Goldfarb, Catherine Tucker

NBER Working Paper No. 23684
Issued in August 2017
NBER Program(s):Productivity, Innovation, and Entrepreneurship

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.

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Document Object Identifier (DOI): 10.3386/w23684

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