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Singh_Econ139A_S2011_Lec2

Singh_Econ139A_S2011_Lec2 - E-Commerce and business...

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1 business. technology. society. E-Commerce and the New Economy The Economics of Electronic Commerce (Economics 139A) UCSC Spring 2011 Professor Nirvikar Singh March 30, 2011
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2 The Internet Worldwide network of computer networks built on common standards Created in late 1960s Services include the Web, e-mail, file transfers, etc. Can measure growth by looking at number of Internet hosts with domain names
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3 The Growth of the Internet, Measured by Number of Internet Hosts with Domain Names Figure 1.3, Page 23 SOURCE: Internet Systems Consortium, Inc. , 2010.
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4 The Web Most popular Internet service Developed in early 1990s Provides access to Web pages HTML documents that may include text, graphics, animations, music, videos Web content has grown exponentially Google indexes between 75 – 100 billion pages
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5 Insight on Technology: Spider Webs, Bow Ties, Scale-Free Networks, and the Deep Web Class Discussion What is the “small world” theory of the Web? What is the significance of the “bow-tie” form of the Web? Why does Barabasi call the Web a “scale-free network” with “very connected super nodes”?
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6 Origins & Growth of E-commerce Precursors: Baxter Healthcare Electronic Data Interchange (EDI) French Minitel (1980s videotex system) None had functionality of Internet 1995: Beginning of e-commerce First sales of banner advertisements E-commerce fastest growing form of commerce in United States
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7 The Growth of B2C E-commerce Figure 1.4, Page 25 SOURCES: Based on data from eMarketer, Inc., 2010; authors’ estimates.
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8 The Growth of B2B E-commerce Figure 1.5, Page 28 SOURCES: Based on data from U.S. Census Bureau, 2010; authors’ estimates.
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