Survey of Salience of Extant Approaches to Digital Enterprises from Evolutionary Economics, Bounded Rationality and Satisficing Approaches
Abstract
Previous approaches to Digital Enterprises are surveyed, and their relevance to current approaches to modeling the Law of One Price, which holds that for identical goods in frictionless markets, the price for those goods should be the same. We find evidence based on a large new dataset of prices for homogeneous goods that this is not so. We also compare the data gathered here with data from other sources to obtain a more reliable indicator. A model is built to explain the variation in the prices of different goods in terms of information flows. This study is carried out within the context of the nascent Semantic Web.
