Digital economy and social welfare
28 نوفمبر 2021 2021-11-25 20:44Digital economy and social welfare
What is the measure of the contribution of the digital economy to social welfare?
The contribution of digital economy to social welfare can be measured by asking the consumer how much money would he pay to prevent restricting his access to a certain digital service for example Facebook. The difference between what he’s ready to give up and what he actually gives up/pays (usually nothing) is his consumer surplus and his social welfare
Can be measured by the utility that the customer take from the service it self and if he is willing to pay in order to access to this service
By the measurement of customers satisfaction compared to the monetary value paid and this is measured by simply asking consumers which measures consumers utility
The contribution can be measured by asking the consumer how much money would he pay to make him access to a certain digital service and also to qualify social welfare the consumer surplus is the difference between he is ready to pay and what he acctually paid
The contribution of the digital economy to social welfare is to quatify social welfare, consumer surplus can be measured by requiring consumers to choose between keeping access to the digital product or giving it up in exchange for monetary compensation
contribution can be measured by knowing from the consumer what would he pay to make him access to a certain digital service and also to qualify social welfare the consumer surplus is the difference between he is ready to pay and what he actually paid