Economics, ecommerce

Also, internet virus and e-commerce fraud generate huge loses to world economy. Use of e-currency may create more opportunity for easy theft, just like monitarisation of commerce created more opportunity for pick-pocket in the past two centuries. All of the new phenomena call for institutional innovation and new policies that cannot be sorted out in the absence of government actions. Should the government institute a licensee system for e-commerce and an internet police system to address the new phenomena of e-commerce and internet economy?

Recent many economic theories and models are developed to investigate impersonal networking decisions and strategic networking decisions. Inframarginal analysis (total cost-benefit analysis across corner solutions in addition to marginal analysis of each corner solution) is a feature of the literature. The inframarginal analysis of networking decisions is much more powerful than conventional marginal analysis for explaining e-commerce phenomena.