Native Economy of E-Commerce


Unlike the real-world the native economy of the Internet is not based on scarcity but on abundance. – Paul Bambury

One of common discussion in economics is allocation of scarce resources. And one of the many reasons behind pricing (talking about high pricing here especially) a commodity is to let those with greater demand for it to ‘vote for it’ and consume it (since the consumer will derive greater utility through the product, they will be willing to pay a price as high as their utility level).

So when the resources are scarce and anyone with any level of demand can access certain commodities, do some business and economic principles not apply anymore?

Reading the quoted line above really makes me appreciate the creative minds that were able to make money in the online world of abundance.


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