The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Internet and the Offline World

  • Avi Goldfarb
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2931

Abstract

This article emphasises that a key to understanding the (net) benefits of the Internet is to remember that all online activity has an offline context. People live their lives offline. Therefore, the fall in communication costs and the fall in distribution costs associated with the diffusion of the Internet had a heterogeneous impact across locations.

Keywords

Agglomeration Communication costs Distribution costs E-commerce Internet Online–offline Regulation 

JEL Classifications

L81 L86 R11 
This is a preview of subscription content, log in to check access.

Bibliography

  1. Agrawal, A., and A. Goldfarb. 2008. Restructuring research: Communication costs and the democratization of university innovation. American Economic Review 98(4): 1578–1590.CrossRefGoogle Scholar
  2. Agrawal, A., C. Catalini, and A. Goldfarb. 2012. Crowdfunding: Social frictions in the flat world? Working paper, University of Toronto.Google Scholar
  3. Anderson, E., N. Fong, D. Simester, and C. Tucker. 2010. How sales taxes affect customer and firm behavior: The role of search on the Internet. Journal of Marketing Research 47(2): 229–239.CrossRefGoogle Scholar
  4. Balasubramanian, S. 1998. Mail versus mall: A strategic analysis of competition between direct marketers and conventional retailers. Marketing Science 17(3): 181–195.CrossRefGoogle Scholar
  5. Blum, B., and A. Goldfarb. 2006. Does the Internet defy the law of gravity? Journal of International Economics 70(2): 384–405.CrossRefGoogle Scholar
  6. Brynjolfsson, E., Y.J. Hu, and M. Rahman. 2009. Battle of retail channels: How product selection and geography drive cross-channel competition. Management Science 55(11): 1755–1765.CrossRefGoogle Scholar
  7. Cairncross, F. 1997. The death of distance. Cambridge, MA: Harvard University Press.Google Scholar
  8. Choi, J., and D. Bell. 2011. Preference minorities and the Internet. Journal of Marketing Research 48(4): 670–682.CrossRefGoogle Scholar
  9. Ellison, G., and S.F. Ellison. 2009. Tax sensitivity and home state preferences in Internet purchasing. American Economic Journal: Economic Policy 1(2): 53–71.Google Scholar
  10. Forman, C., and N. van Zeebroeck. 2012. From wires to partners: How the internet has Fostered R&D collaborations within firms. Management Science 58(8): 1549–1568.CrossRefGoogle Scholar
  11. Forman, C., A. Goldfarb, and S. Greenstein. 2005. How did location affect adoption of the commercial Internet: Global village vs. urban leadership. Journal of Urban Economics 58(3): 389–420.CrossRefGoogle Scholar
  12. Forman, C., A. Goldfarb, and S. Greenstein. 2008a. Understanding the inputs into innovation: Do cities substitute for internal firm resources? Journal of Economics and Management Strategy 17(2): 295–316.CrossRefGoogle Scholar
  13. Forman, C., A. Ghose, and B. Wiesenfeld. 2008b. Examining the relationship between reviews and sales: The role of reviewer identity disclosure in electronic markets. Information Systems Research 19(3): 291–313.CrossRefGoogle Scholar
  14. Forman, C., A. Ghose, and A. Goldfarb. 2009. Competition between local and electronic markets: How the benefit of buying online depends on where you live. Management Science 54(1): 47–57.CrossRefGoogle Scholar
  15. Forman, C., A. Goldfarb, and S. Greenstein. 2012. The Internet and local wages: A puzzle. American Economic Review 102(1): 556–575.CrossRefGoogle Scholar
  16. Friedman, T. 2005. The world is flat: A brief history of the twenty-first century. New York: Farrar, Straus, and Giroux.Google Scholar
  17. Gaspar, J., and E. Glaeser. 1998. Information technology and the future of cities. Journal of Urban Economics 43: 136–156.CrossRefGoogle Scholar
  18. Ghose, A., A. Goldfarb, and S.P. Han. 2012. How is the mobile internet different? Search costs and local activities. Information Systems Research, in press.Google Scholar
  19. Glaeser, E. L., and Ponzetto, G. A. M. 2007. Did the death of distance hurt detroit and help New York? NBER Working Paper #13710.Google Scholar
  20. Goldfarb, A., and C. Tucker. 2011a. Advertising bans and the substitutability of online and offline advertising. Journal of Marketing Research 48(2): 207–228.CrossRefGoogle Scholar
  21. Goldfarb, A., and C. Tucker. 2011b. Search engine advertising: Channel substitution when pricing ads to context. Management Science 57(3): 458–470.CrossRefGoogle Scholar
  22. Goldfarb, A., and C. Tucker. 2011c. Privacy regulation and online advertising. Management Science 57(1): 57–71.CrossRefGoogle Scholar
  23. Goldmanis, M., A. Hortacsu, C. Syverson, and O. Emre. 2010. E-commerce and the market structure of retail industries. Economic Journal 120(545): 651–682.CrossRefGoogle Scholar
  24. Goolsbee, A. 2000. In a world without borders: The impact of taxes on internet commerce. The Quarterly Journal of Economics 115(2): 561–576.CrossRefGoogle Scholar
  25. Greenstein, S. 2000. Building and delivering the virtual world: Commercializing services for internet access. Journal of Industrial Economics 48(4): 391–411.CrossRefGoogle Scholar
  26. Grubesic, T.H. 2012. The national broadband map: Data limitations and implications for public policy evaluation. Telecommunications Policy 36: 113–126.CrossRefGoogle Scholar
  27. Hampton, K., and B. Wellman. 2002. Neighboring in Netville: How the Internet supports community and social capital in a wired suburb. City and Community 2(3): 277–311.Google Scholar
  28. Hortaçsu, A., F. Asís Martínez-Jerez, and J. Douglas. 2009. The geography of trade in online transactions: Evidence from eBay and MercadoLibre. American Economic Journal: Microeconomics 1(1): 53–74.Google Scholar
  29. Jin, G.Z., and A. Kato. 2007. Dividing online and offline: A case study. Review of Economic Studies 74(3): 981–1004.CrossRefGoogle Scholar
  30. Lieber, E., and C. Syverson. 2012. Online v. offline competition. In Oxford handbook of the digital economy, ed. M. Peitz and J. Waldfogel. Oxford: Oxford University Press.Google Scholar
  31. Mack, E.A., and T.H. Grubesic. 2009. Forecasting broadband provision. Information Economics and Policy 21(4): 297–311.CrossRefGoogle Scholar
  32. McLuhan, M. 1962. The Gutenberg galaxy. Toronto: University of Toronto Press.Google Scholar
  33. Prieger, J., and W.-M. Hu. 2008. The broadband digital divide and the nexus of race, competition, and quality. Information Economics and Policy 20(2): 150–167.CrossRefGoogle Scholar
  34. Scott Morton, F. 2006. Consumer benefit from use of the Internet. In Innovation policy and the economy, ed. A.B.. Jaffe, J. Lerner, and S. Stern, Vol. 6, 67–90. Cambridge, MA: MIT Press.Google Scholar
  35. Sinai, T., and J. Waldfogel. 2004. Geography and the Internet: Is the Internet a substitute or a complement for cities? Journal of Urban Economics 56: 1–24.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Avi Goldfarb
    • 1
  1. 1.