Impacts of Economic and Institutional Dynamics on New Media Applications Penetration: Sample Country Analysis

New Media Applications: Good In The Economy

Describing the character of new media applications as different economic goods is key for understanding the role of them in the economic and social lives. It is also important to find out the answer to the essential question: “Why do penetration rates of new media applications are less in some countries but more in others?”. If we understand the characteristics of classical economic goods, information goods and digital goods, it becomes easier to describe new media applications and its different character as economic goods in terms of their price, costs structure, barriers and externalities.

Fundamentals of economics start with the economic problem which is scarcity and choice. They originate from the economic systems that help to transform existing resources to goods and services in order to satisfy the needs and wants. The types of the resources that are used for transformation help to categorize the goods in the economy. But before explaining the categories of the goods, it should need to know that goods that have value, traded in the national/international/global markets and that have scarcity risks are economic goods¹. In the literature of economics, consumers’ goods and producers’ goods are two main groups that can be called as classical goods. Consumers’ goods are the final goods that satisfy the needs and wants of the consumers directly. So they can be called as final goods in the economy. Producers’ goods are those used for the act of production. These type of goods are also called capital goods and semi-final goods.²