The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Internet and the Offline World

  • Avi Goldfarb
Reference work entry


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.


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

JEL Classifications

L81 L86 R11 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Avi Goldfarb
    • 1
  1. 1.