internet & society

How does efficiency, efficacy, and incentive impact sharing in the digital economy?

ANSWER

Internet and Society

A digital economy is an economy that conducts businesses through the internet and is based on digital computing technologies. Elements of efficiency, efficacy, and incentive have had an impact on the sharing of the digital economy. With the advanced changes in technology, new forms of sharing of the digital economy have emerged. Digital transitions of sharing have led to efficient access to resources (Pouri & Hilty, 2021). Efficiency has led to the creation of new sharing practices in the formal market economy leading to the digital sharing economy. Efficiency has led to the improvement of sectors in the sharing of the digital markets. Efficacy has impacted sharing of the digital economy in that it has led to the improvement of labor and capital productivity. Improvement of labor and capital productivity has led to the growth of the economy, more so in developing countries (Georgiadis et al., 2017). Efficacy in sharing the digital economy has led to the integration of many countries into the global market system since it reduces transaction costs.

Incentives have led to the expansion and growth in the sharing of the digital economy. Incentives increase the net revenue for the companies and businesses that receive them; hence, they retain them as profits. Through incentives, the digital market has been able to increase the growth of local digital markets by increasing their prospects and income. Incentives act as a powerful tool for driving behavioral changes throughout the sharing of the digital economy (David, 2019). The use of incentives and rewards encourages many people in the digital economy, especially customers, to buy goods and products. Sharing of the digital economy has achieved sales growth and profit through incentives.

References

David, M. (2019). Incentives to Share in the Digital Economy. In Society and the Internet (2nd ed.). Oxford University Press. https://doi.org/10.1093/oso/9780198843498.003.0020

Georgiadis, L., Iosifidis, G., & Tassiulas, L. (2017). On the Efficiency of Sharing Economy Networks. IEEE Transactions on Network Science and Engineering, 7. https://doi.org/10.1109/TNSE.2019.2904431

Pouri, M. J., & Hilty, L. M. (2021). The digital sharing economy: A confluence of technical and social sharing. Environmental Innovation and Societal Transitions, 38, 127–139. https://doi.org/10.1016/j.eist.2020.12.003