Scarcity hypothesis is the cornerstone of traditional economic theory. However, in the digital era, new products such as Windows, Android, and Wechat have been introduced to the market. Traditional economic theory may not be able to explain various nez economic phenomena in the digital era. This book creatively proposes the concept of limitless supply and then discusses its implications for economy at both macro and micro-levels.It analyses and summarizes the basic features of limitless supply products, and compares the differences and similarities of how limited supply and limitless supply products are manufactured and marketed. The book also provides reasons for why manufacturers of limitless supply products create intangible assets. It argues that the scale of an enterprise producing limitless supply products depends on the number of users, whereas the scale of an enterprise producing limited supply products depends on the production capacity.This book is mainly written to construct a preliminary, simple, yet relatively comprehensive economic theory framework for limitless supply, and to interpret the phenomena and corporate behaviour. It further explores how enterprises providing limitless supply products grow financially. It also proposes the fundamental difference in growth models between enterprises providing limitless supply products and those providing limited supply products. The book also looks at how growth models can achieve fission growth.
Author(s): Chunsheng Zhou, Xiuhai Hu
Publisher: World Scientific Publishing
Year: 2022
Language: English
Pages: 173
City: Singapore
Contents
Foreword: New Economy Calls for New Theories
Foreword: Limitless Supply: Theoretical Innovation in the Era of New Economy
Preface
About the Authors
Acknowledgements
Chapter 1 New Economy Driven by Innovation and Digitalization
Demand Creation and New Consumption in the Era of Smart and Digital Economy
New Economic Increments Driven by Digitalization and Innovation
Why is the Acceleration in Technological Innovation Leading to a Deceleration in Economic Growth?
Trend of Future Economic Growth
Chapter 2 Limitless Supply Triggered by Innovation,
Digitalization, and Technology
Traditional Economy — Scarcity of Resources and Limited Supply
What Exactly are Limitless Supply Products and Limitless Supply Economy?
Fundamental Difference between Limitless and Limited Supply Products
Overturning Traditional Economic Concepts
Intangible Assets and User Capitalization
Chapter 3 Influence of Limitless Supply and Technological Development on GDP
Categories for Innovation in Economics
Limitations of GDP Indicators in the Smart and Digital Age
How Important is Technological Innovation to GDP?
Influence of Different Types of Technological Innovation on Economy
GDP Calculation of Limitless Supply Products
Chapter 4 Unique Features of How Limitless Supply Products Generate Profits
Limitless Supply and Long-Tail Theory
Demand and Pricing of Limitless Supply Products
Price Discrimination — Differential Pricing Strategy
From 1 to N
Paid, Free, or Subsidized
Beware of the Deal Hunters
Case: Ofo hongbao bikes suffered huge losses caused by deal hunters
Integration of Limitless and Limited Supply
Chapter 5 How Enterprises Grow with Limitless Supply
Review of Traditional Enterprise Growth Models
How Do Vendors of Limitless Supply Products Grow?
Case: WeChat’s development and customer growth history
Viral Marketing and Enterprise Growth
User Growth Patterns of Limitless Supply Products
Case: History and success of zoom
Zoom’s business and profit model
Zoom’s rapid growth trajectory
What’s behind Zoom’s success?
Zoom takes off again
Chapter 6 Positive Feedback and Fission-Type Growth
Migration Cost and Lock-in Effect
Network Effect in Smart and Digital Economy
Positive Feedback and Fission-Type Growth
Chapter 7 From Product Competition to Ecosystem Strategy
Market Structure of Limitless Supply Products
Diversification to Overtakes on the Corner
Case: How did Google surpass Microsoft?
Case: How Toutiao overtook at the corner
Track-Seizing, Micro-Innovation, and Disruptive Innovation
Case: Competition between Tencent and Toutiao
Eight-month-long battle that started from a short video
What lit the fuse to this “Tencent–Toutiao legal battle” was a short video
Why did Zhang Yiming accuse WeChat of banning Toutiao products?
The “comment fight” in WeChat Moments kicked off the “Tencent–Toutiao legal battle”
As competition intensifies, will Tencent completely block Toutiao-related products from WeChat’s ecosystem?
Is the long-running bitter Tencent–Toutiao legal battle a battle for stock?
Douyin “random filming”
Crossover and Ecosystem Competition
Case: Alibaba’s ecosystem
Chapter 8 Reflecting on New Policies in the Era of New Economy
From Rivalrous to Non-rivalrous
Tragedy and Comedy of the Commons
Policy Analysis in the New Economy Era
Bibliography
Appendix: Theories and Simple Models of Limitless Supply Economics
How Limitless Supply Overturns the Scarcity Hypothesis and Market Clearing
Supply–Demand Analysis and Equilibrium Pricing of Limitless Supply Products
Influence of Derivative Yield on the Price of Limitless Supply Products
Economic Analysis of the Bundling of Limitless and Limited Supply Products
Index
