A simple model of online marketing, production, profit and growth
Year: 2024
Type: article
Abstract: We build an optimization model to decipher the effects of digitalization in trading or marketing. The basic model uses Cobb -Douglas production function to argue that a shift from offline to online may induce increase in profit and subsequent economic growth. The factor-intensity of trading has a role in this context. Additionally, night time utilization due to digitalization further strengthens our results. The extended model with a CES production function gives similar results. However, revenue and cost implications are not same in these two cases. Nevertheless, the essence of the basic results holds true even in a more generalized case.
Authors: Biswajit MANDAL, Labani Roy CHAKRABORTY, Alapan SANYAL
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7071223914
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