Internet, Information-Components and Screening-Market

—Theoretical Model and Application of Modern Network and Information Economy, Economic Research Journal,2016,09

Abstract: This paper firstly discovers information duality and the market characteristics of Internet economy at home and abroad through the concepts of information component, thus reveals and proves that the network economy have the endogenously non-clearing market and external effect; Internet can unified information duality to make the information flow and physical distribution unified; network externalities can be internalized by copying, sharing and cooperation, so that it can generate network aggregation—synergy effect and create social benefits and efficiency of resources allocation beyond the traditional economy of scale. Economic activity is no longer follow the general equilibrium analysis. Based on information component and the principles of network information pool, this paper builds dynamic cooperative game model whose utility is incomplete transferred and its extended models, studies the market structure and  behavior characteristics of network economy, and solves the information asymmetry and network externalities and other major issues. Our work makes a huge revision for famous "Moore's law" and other classic theory, and becomes the significant progress and breakthrough for theory research and practical application in fields of modern network economics and information economics. In addition, this article also points out that the Internet has made the real economy and virtual economy unified, and information dichotomy of mainstream economic theory needs to change.

Keywords: Information-Components; Screening-Market; Information Duality and Characteristics Of Network Economy Market; Network Information Aggregation—Synergy Effects；Allocation of Internet Economic Resources