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paypal and General Purpose Technologies

How does take advantage of "DNI GPTs" (Digital, network, individualization general purpose technologies)?

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Traditionally, economists have considered the accumulation of conventional inputs such as labor and capital to be the primary force behind economic growth. Now, however, many macroeconomists place technological progress at the center of the growth process. General Purpose Technologies (GPTs), such as the steam engine or the computer, play a key role in economic growth. They allow many industries to perform business more efficiently. Most of the economic value they create is in the complementary innovations they foster. GPTs involve high fixed costs in invention and low marginal costs in reproduction. As a GPT is adapted for any new use, time, additional expense and further invention are required.

The Internet itself can be considered a GPT. But at the same time, it benefits from the development of GPTs specific to Internet transactions. The Internet suffers from what is called an "e-cash void." E-cash is a payment system allowing for ...

Solution Summary

The solution discusses Paypal and how it takes advantage of general purpose technologies.