Wednesday, October 05, 2005

Adam Smith's theory of markets from the Internet-perspective.

"If every buyer knew every seller's price and every seller knew what every buyer was willing to pay, everyone in the "market" would be able to make fully informed decisions and society's resources would be distributed efficiently." - Adam Smith in his book, The Wealth of Nations.

Often a buyer doesnt have enough information when he goes into the market for shopping. This bottleneck can only be eliminated in this Information Age with the help of the Internet. Adam Smith's theory of markets can be implemented successfully if we can devise Internet-based applicatons that allow a buyer to have total information before making any purchasing decision. I think this is the future of e-commerce - providing full information to a buyer in an organized manner so that he can make an informed and wise decision.

Bill Gates in his book, The Road Ahead confirms that we are in the Information Age and in this age unlike previous ages, people wont fight for natural resources but will fight for Information. The more information you have and can sell the wealthier you become.

I think, to create an Internet application to provide full information about sellers to a buyer would be the next killer application and the right approach to conquer the e-commerce puzzle.