E-Commerce

1. E-Commerce Post Industrial Economy Prof. Dr. Tilo Hildebrandt

2. Longterm Economic Trends ? • Kondratieff-Cycles ??? 1980 Information Technology 1940 Individual Mobility 1913 Mass Production 1840 Second Industrial Revolution 1780 Start of Industrialization

3. News groups Services on The Internet Search Engines E-Mail Chat W W W Filetransfer Internet Prof. Dr. Tilo Hildebrandt

4. New Quality of Communication Time-delayed communication Actors with own computing facilities Interaction between unknown partners Minimal transaction costs (low entropy) Internet Characteristics Efficiency Prof. Dr. Tilo Hildebrandt

5. Exponential Growth of Value Actors on the Internet Sender: 5 CP Network: 15 CP generally CP = A-1 CP = A2 –A CP:= Communication Possibilities – A:= Actors Prof. Dr. Tilo Hildebrandt

6. Postindustrial Economy Production Costs for Seller Total Cost of Products Transaction Costs of Seller Internet Saving Potential Transaction Costs of Buyer Prof. Dr. Tilo Hildebrandt

7. Find Customer – Bind Customer Increasing Profitability Reducing Transaction Cost Prof. Dr. Tilo Hildebrandt

8. Virtual Identity Virtual Community Virtual World Virtual Money Virtual Goods Prof. Dr. Tilo Hildebrandt

9. Classical Descriptive Economy Modern Präscriptive Vision Internet Economy Prof. Dr. Tilo Hildebrandt

10. EconomicTheory Omniscient Actors in simple Decision Situations • No Adaptation Period • No Transaction Costs • No Quality Differenciation • Total Information • Decision only Price Based • Closed System • Equilibrium

11. Economic Reality Nescient Actors in Complex Decision Situations

12. Recheck the Circumstances of the Economic Theory with the Conditions of Internet and E-Commerce and Revive in Neoclassical Paradise