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E-exchange and the Boundary between Households and Organizations

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  • Assar Lindbeck
  • Solveig Wikström

Abstract

The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the exchange process between households and organizations is underestimated by only considering the consequences for the last stage of the process, i.e., the final purchase of goods and services. Our analysis of household behavior utilizes a modified version of Gary Becker’s model of the household as a combined producer-consumer.

Suggested Citation

  • Assar Lindbeck & Solveig Wikström, 2002. "E-exchange and the Boundary between Households and Organizations," CESifo Working Paper Series 806, CESifo.
    • Handle: RePEc:ces:ceswps:_806
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    References listed on IDEAS

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    1. Brian T. Ratchford, 1982. "Cost-Benefit Models for Explaining Consumer Choice and Information Seeking Behavior," Management Science, INFORMS, vol. 28(2), pages 197-212, February.
    2. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    3. Wright, Alice A & Lynch, John G, Jr, 1995. "Communication Effects of Advertising versus Direct Experience When Both Search and Experience Attributes Are Present," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(4), pages 708-718, March.
    4. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    5. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    6. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
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    Cited by:

    1. Emek Basker & Lucia Foster & Shawn Klimek, 2017. "Customer‐employee substitution: Evidence from gasoline stations," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 876-896, December.
    2. Lindbeck, Assar, 2003. "Improving the Performance of the European Social Model - The Welfare State over the Life Cycle," Seminar Papers 717, Stockholm University, Institute for International Economic Studies.
    3. Dominik Aaken & Andreas Ostermaier & Arnold Picot, 2014. "Privacy and Freedom: An Economic (Re-)Evaluation of Privacy," Kyklos, Wiley Blackwell, vol. 67(2), pages 133-155, May.

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