Replacing the Traditional Economy with Web Economy: The Need of the Hour

Abstract

The rise of web economics signifies a fundamental shift in the creation, trading, and consumption of value driven by digital technologies, impacting traditional economic models significantly. This study outlines the evolution from conventional economic systems—capitalism, socialism, and mixed economies—to a digital framework marked by network effects, resource allocation diversity, and a move from scarcity to abundance. Web economics addresses the inefficiencies and inequalities inherent in previous systems through enhanced connectivity, user participation, and innovative business models that leverage the internet's architecture. By exploring the limitations of orthodox economic theories and emphasizing the importance of dynamic pricing and two-sided markets, this research underscores the potential for web economics to offer inclusive, efficient alternatives to outdated models. Additionally, it highlights the critical need for updated regulatory frameworks that align with the complexities of digital ecosystems. Recommendations for future research focus on understanding market dynamics within rapidly evolving web environments, the implications of network externalities, and addressing the socio-economic impact of the digital divide.