Internet shopping proves what economists think: it's all about price by Ross Gittins

Posted in: Internet Use/New Technologies at 21/11/2011 17:02

The critics of economists often accuse them of trying to change the world to make it more like their textbooks. But now the mountain is coming to Muhammad. The internet, and the electronic commerce it promotes, is making real-life markets work more the way economists assume they do.

As the retailers - particularly the department stores - have sought to explain the weak growth in their sales, their gaze has fallen on the internet. The high dollar has made it more attractive for people to buy stuff on the net from overseas sites. And people who buy from foreign sites don't have to pay goods and services tax on purchases of less than $1000.

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