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Consumer

In current society, the transactions costs make organization of consumers expensive. With the social nervous system household computers facilitate the organization of various types of consumers groups. Two types of special interest are:

a. Buyer's Groups: If households tend to select communities with similar interests, they would have a powerful incentive to form buyer's groups in order to obtain discount prices through large purchase orders. With the advance in home computers and LANs in communities the organization of such purchases can be greatly facilitated by software. For example, the community could purchase its weekly groceries in a single purchase. Deliveries could be made to and distributed at the community center.

Buyer's Services: In addition, the creation of the social nervous system creates a media for the development of buyer's services to provide information concerning purchases made through the social nervous system. Such information includes the best price plus information and software to analyze the various attributes of market products. The impact of buyer's services on the market would be enormous if consumers were given sufficient information rights. For example, if the buyer's service represented 1M households and received overnight by E-mail the repair records of all equipment bought by its clients, the buyer's service could quickly spot defects in products on the market. If the buyer's service issued a warning to its clients not to buy these products, the manufacturers would by under constant pressure to immediately correct any known defects.


norman@eco.utexas.edu
Thu Jun 8 16:37:44 CDT 1995