How are our societies being transformed by internet and digital economics? This book provides an accessible introduction to the economics of the internet and a comprehensive account of the mechanisms of the digital economy. Leading scholars examine the original economic and business models being developed as a result of the internet system, and explore their impact on our economies and societies. Key issues are analysed, including the development of open source software and on-line communities, peer-to-peer and online sharing of cultural goods, electronic markets and the rise of new information intermediaries, e-retailing and e-banking. The volume examines how internet and digital economics have transformed the organization of firms, industries, markets, commerce, modes of distribution, money, finance, and innovation processes, and provides the analytical tools to understand both these recent transformations and the likely future directions of the 'New Economy'.

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