Parasitic Technologies and Non-Creative Destruction
6 Pages Posted: 1 Nov 2007
Date Written: March 2006
There appears to be a common misconception, even among economists, that all instances of new technologies driving out old technologies are beneficial. This short essay attempts to point out that some new technologies do not so much replace an old technology as destroy an old technology without a superior technology left in place. The example provided concerns a technology whose sole function is to remove advertising from advertising based programming. Such a technology would unambiguously decrease total surplus.
Keywords: technology, tivo, commercials, advertising
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