The developments of the Digital Economy will have a fundamental impact on the structures and processes of economic systems. Within this new economy the importance of the creation and maintenance of a relationship between a customer and a supplier is increasing, but the way to handle this relationship is changing. Therefore, we focus on the upcoming challenges to relationships between suppliers ...

Incentive strategies are used in collaborative user-centric networks, the functioning of which depends on the willingness of users to cooperate. Classical mechanisms stimulating cooperation are based on trust, which allows to set up a reputation infrastructure quantifying the subjective reliance on the expected behavior of users, and on virtual currency, which allows to monetize the effect of p...

A theory is presented which predicts that performance will stabilize at an equilibrium level in a long-term token economy. This prediction is based on the joint consideration of consumption schedules (relationships between income and expenditure) and a hypothesized critical range of savings (a range of savings above which performance deteriorates and below which performance improves). Procedure...

When a firm changes its unique mix of products, markets, and technologies, some of employees’ previously acquired human capital depreciates. As a result, the firm can credibly renegotiate down employees’ quasi rents, which it had promised them as a reward for their human capital investments. We show that linking employees’ pay to total firm value, a widely observed phenonemon in practice, can m...

This paper analyzes the real effects of differences in structures on financial markets, especially concerning quasi-equilibrium unemployment. It argues that a vibrant venture capital market is an important prerequisite for financing structural change and thus for keeping unemployment low in the ongoing transition to the “new economy”. It furthermore points out the crucial importance of extensiv...

Economics-related ICT research has moved from the fringes of the discipline to penetrate all of its branches. It is, therefore, not a separate economics sub-discipline. It is also unlikely to become part of an ‘ICT or Internet Research’ proto-discipline. Instead, it should be seen as only one part of a bigger agenda toward a proper ‘information and knowledge economics’ and possibly a future pro...

Generation and exploitation of knowledge became one of the most significant components in the new economy. This paper first investigates influence of information and communications technology on economy, with specific emphasis on Internet economy and electronic commerce. The paper then describes characteristics of the knowledge economy, discusses knowledge, presents main issues relevant for bui...

The transition to the New Economy accelerated in the last half of the 1990s. Using new economy index measures, one can see that rapid growth in service sector activity from 1990 to 2000, at 45 percent, overshadowed the performance of the nation’s manufacturing sector, at 22 percent (Atkinson and Court). We now live in an economy where 80 percent of all workers do not produce things. Even within...