Information Technology Compares Technology Economy Development

Information Technology Compares Technology Economy Development Synopsis

On the Internet information economic market influence hand, inventions that improve communications are hardly limited to the modern age. But the rapid growth of electronic storage, access and transmission of information highlights of providing incentives for creating new information. Many new information technologies have large sunk costs but virtually zero marginal costs. With the low cost of electronic information systems like the internet, it is technologically possible to make the large amounts of information available to everyone, everywhere, at close to zero marginal cost. Perfect competition is nowadays different e-commerce internet information business competitive feature, and any e-commerce merchants can not survive here because a price equal to a zero marginal cost will yield zero revenues and therefore no viable firms.Hence, .the economics of the information economy highlights the conflict between efficiency and incentives On the one hand, all information, might be provided free of charge, e.g. free e-book download, e-song download e-movie download from internet. Free provisions of information looks economically efficient because the price would thereby be equal to the marginal cost, which is zero. But a zero price on intellectual property would destroy the profits and therefore reduce the incentives to produce new books from authors, movies and songs from creators would earn little rewards from their creative activity. But with the costs reproduction and transmission so much lower for electronic information than for traditional information, so the future any electronic publishing industry 's products, e.g. e-books, e-songs, e-music, e-movies prices will be lower than traditional paper books, pack of songs and movies price, either consumers go to shops to buy them or consumers pay visa card to enter websites to buy any e-books, songs, e-music, e-movies from internet channel. Then, it will cause these traditional publishing and entertainment industries' competition to be raised because these e-publishers or e-entertainment can reduce their price to sell from their websites when their costs are nearly to zero. Hence, information technology can raise competition to the traditional publishing and entertainment industries. The traditional paper book, music, movie business merchants need to any authors or creators to help them to create any unique movies, songs, paper books to sell from their shops and they need to ensure their authors or music, movie creators won't give these creative book, song, movie products to any e-music, e-publisher, e-movie merchants to sell from their websites absolutely.On conclusion, information technology influence any music, publish, movie creative product competitive raising to the traditional paper book publishers, music or movie publishers when many book publishers or music or movie creators choose e-commerce to replace traditional shop visiting sale method. So? it is possible to influence overall publishing and music and movie creative industries will change to e-commence consumption model. Then the traditional book and music and movie visiting stores will disappear and the online websites to these merchants will increase and their price also will reduce in global e-publishing and e-creative product consumption environment. So, information technology will bring some traditional store visiting number decreases and online merchant e-store number increases and consumers can pay less price to buy these creative products from internet.