Johnny Ch Lok

Information Technology Raises Economy Development Johnny Ch Lok

Economic science has a direct impact on our lives and it has a critical role to play to consumers and organization decision makers. Such as when you read the newspapers about disputes concerning current economic issue, are you often argue the issue? If you think that a better, cheaper television information source does come from newspapers, radio, television or magazine advertisement, then what channel that you will gather the kind of television information, internet will be the best channel to gather information because it is rapid and convenient. So, technological innovation can influence consumers to gather information. Any people can turn on computer and we can find any information from internet. It is one the lowest cost and less time spending information gather method. Every aspect of human behavior reacts to cost in some way. When the cost of something fall, becomes more attractive to use. Such as internet information gather channel method. But, how internet information gathering channel influences our economic development, instead of human information gathering behavior changes. For a firm case, when it can attempt to sell the same item to different consumers at different prices. ( price discrimination). When you are on an airplane, ask the person next to you how much he or she paid for the ticket. It's probably nor what you paid. You are sitting on the same plane, travelling to the same destination, eating the same food on the plan, but your both ticket price may be difference. Because you do not apply internet to compare the ticket price or you do not apply internet to gather the item price to decide to buy the firm product. So, such as air ticket consumer or product consumer to you, because you do not spend little time to gather air ticket price or the product price information to ensure whether you make decision to buy the product or pre paid the air ticket is reasonable at the moment. If you can gather their information to make decision from internet. It is possible that you do not like to pay for them. So, internet role is one fair or reasonable price gathering tool to let consumers to make compare in order to decide to buy any thing. If any consumers apply internet to gather price information. Then, their sale income will reduce when their prices are unreasonable higher to compare normal days. Consequently, there are not many consumers decide to buy their any things. So, their prices increasing chance will be less, if they hope consumers buy their products easily nowadays. It implies that internet can change consumer behaviors to be clever consumers more than foolish consumers nowadays. Also, it means that firms are not acting in their own best interests more easily because internet creates. For example, when one traveler gather information concerns whether it is less cost between catching air plane or driving car to arrive the destination in US. He can gather information from internet more easily. Using a car seat requires that a family buy an extra seat on the plane, which dramatically increases the cost of flying when he find the domestic plane ticket price information from internet. Airlines no longer offer significant children's discount, a seat is a seat, and it is likely to cost more dollars. As a result, some families will choose to drive rather than fly in US.