E-Exchange and the Boundary between Households and Organizations

The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the exchange process between households and organizations is underestimated by only considering the consequences for the last stage of the process, i.e., the final purchase of goods and services. Our analysis of household behavior utilizes a modified version of Gary Becker’s model of the household as a combined producer-consumer.

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