economic theories of the internet

Economic theories of the internet explore how digital networks impact markets, value, and behavior. They examine how data, network effects, and platform economies create unique ways for goods and services to be produced, distributed, and consumed. For example, network effects mean a platform becomes more valuable as more users join, like social media or online marketplaces. Theories also analyze issues like monopoles, pricing strategies, and the digital economy’s influence on traditional industries. Overall, these theories help explain how the internet reshapes economic relationships, opportunities, and challenges in a connected world.