[12111] in Commercialization & Privatization of the Internet
Re: The internet will kill us
daemon@ATHENA.MIT.EDU (Roger Bohn)
Fri May 6 00:56:43 1994
Date: Thu, 5 May 1994 17:42:30 -0800
To: Doug Humphrey <digex@ss1.digex.net>,
Tom Limoncelli <tom_limoncelli@warren.mentorg.com>
From: Rbohn@ucsd.edu (Roger Bohn)
Cc: com-priv@psi.com
>On 26 Apr 1994, Tom Limoncelli wrote:
>
>> The internet will end our ecomomy as we know it as soon as digital cash
>> is accepted and purchases can be made via the internet. It will bring
>> all competition down to price.
Decreasing transactions costs for buying and selling have been a feature of
economic progress since (at least) the end of the Middle Ages. E.g. in the
late 1800s, the railroad made national markets possible for the first time,
by drastically reducing shipping costs. Mail order and 800 numbers in the
1970s. Fedex in the 1980s.
The result is certainly increased competition, and often shifts in the
basis of competition. Product diversification is one big result, which
benefits every consumer. The buzzword today is "mass customization". Get
what you want, where you want it, the minute you want it, made exactly for
you. (E.g. customized clothing; fast food). See the book _Future
Perfect_.
Yes, certain kinds of retailers will have to adapt or die. But it will
certainly not bring all competition down to price.
