Here is my analysis: Digital economists seem to understand a concept different from the traditional business model. Rather than the two way exchange between provider and consumer, the digital age has spurred economists to rethink the elements in which creates an efficient economy. The article described how the future of business models is becoming more adaptive to exchanging “something” rather than solely money. I found it interesting when they mentioned the asset of time and respect as capital. With the multiple components of exchangeable “externalities” it seems the over lying common denominator is activity. As long as there is any type of activity, economic opportunities exist. Whether it be using a site for free and glancing at an ad or buying cheap CD’s while receiving exposure to a touring band, there is a connection between all those situations which lies in mere activity.
Most traditionally, people receive a service or product and pay for it. But now, humans have developed more complex methods of gaining revenue in parallel to how humans behave. Psychologically, consumers love the idea of free because they don’t have to compensate anything to attain something else. From that, websites have designed their business model to just that type of behavior by allowing their site to be free but have a third party pay them for ad space. And while a user may not think they are affected by advertisement, studies will show that reoccurring ads can significantly solidify a certain inclination towards one brand or another through mere subconscious exposure.
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