Rise of Technology-based Capitalism

The Rise of Technology-based Capitalism

The rise of the Internet in the last decade has brought about a new form of business that has revolutionized the way in which the companies of today operate. There are many possible explanations for the rise of this form of business in society, and all of these explanations are debatable. The rise of digital information and information technology has created a powerful tool that mutually enables consumers and companies to bring about the transformation of traditional capitalism. Companies such as eBay, an online auction site, have created a virtual marketplace for the collectivity of buyers and sellers, improving the dynamics of capitalism. These companies leverage the accessibility, efficiency and information-richness of electronic commerce using the Internet as a tool for the transmission of information. The capitalistic system remains constant in the traditional physical market place, as well as on the Internet; the difference lies in the efficiency of information transmission.

The Internet contains a wealth of information, allowing consumers to gain otherwise unattainable knowledge that is necessary to make informed decisions, thereby using and interpreting digital information to create a virtual capitalistic marketplace. Having access to information about products and services in the commercial marketplace is a main concern and a primary goal for many consumers. The Better Business Bureau states that "the best consumer is the best-informed consumer" (BBBOline). The United States Department of Consumer Affairs reemphasizes this observation on their web site by stating, "Gather information about products or services before shopping. Information may be available from people who have ...

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...n individual level, allowing exchange from consumer to consumer as well as seller to buyer. The Internet is a tool for this exchange, a pipeline for the exchange of anything everything imaginable. In virtual capitalism, information is the true currency driving this exchange as it is continually transferred between consumers and virtual companies.

Notes

BBBOnline. Accessed November 4, 1999. http://www.bbbonline.com/consumers/tips.html.

ConsumerAffairs. Accessed November 5, 1999. http://www.dca.ca.gov/r_r/ecommerce.pdf.

Emarketer, "New Report on Internet Economy." Accessed November 7, 1999 http://www.emarketer.com/estats/110499_intecon.html.

Levy, Steven. "Wired for the bottom line". Newsweek (September 20, 1999)

TechWeb. Accessed November 2, 1999 http://www.internetwk.com/news0199/news012799-5.htm.

"wiredville, U.S.A". Newsweek (September 20, 1999)