The benefits and potential costs of a digital economy

Computerisation, or more generally, digitisation, of an economy has brought about substantial benefits. It has greatly increased productivity. It has significantly advanced both the pace and the scope of economic globalisation and international division of labour. However, digitisation can also enable, through the collection and assembly of individual-consumer-specific information, price discrimination by a seller of a product, which results in the consumer surplus of the buyer being appropriated. Moreover, the widespread use of email and other message application platforms operated by profit-making private enterprises also facilitates the collection and assembly of vast amounts of individual-consumer-specific private information without the explicit and specific consent of the individual consumer, information which can be used to his or her detriment. Possible remedial measures are proposed.