THE DIGITAL DISRUPTION OF UBIQUITOUS ECONOMIC THEORIES

STEPHAN BAURIEDEL

https://doi.org/10.53465/EDAMBA.2021.9788022549301.16-28

 

Abstract: Digitalisation demands new economic theories because the old laws are losing their validity. They were established to describe the business interrelationships in an analogue world. Now digital business models are breaking the boundaries and taking learned knowledge ad absurdum. New economic theories are emerging from the literature to explain how digitalisation works. The author finds that the new assumptions conflict with some ubiquitous economic theories. The inconsistencies were collected, reviewed, and evaluated. It turns out that at least five doctrines are no longer applicable in the digital world, as their parameters shift elementarily. Using a contrasting example from the music industry, the results were examined and confirmed by way of example. The result is that certain economic theories - from Porter to Pareto - no longer apply in the digital world. The rules must be rewritten so that order can emerge again from the growing chaos.

Keywords: digitalisation, digital goods, digital business model, disruption

JEL classification: O33, M21, M15

Fulltext: PDF

Online publication date: 12 May 2022

 

To cite this article (APA style): 

Bauriedel, S. (2022). The Digital Disruption of Ubiquitous Economic Theories. Proceedings from the EDAMBA 2021 conference, 16 – 28.  https://doi.org/10.53465/EDAMBA.2021.9788022549301.16-28