All of the following are increased in traditional markets compared to digital markets except:

Question

Quizplus · Accepted Answer

Digital markets typically exhibit stronger network effects than traditional markets, meaning that as more users join a digital platform or service, the value of that platform or service increases for all users. This is not typically the case in traditional markets, where network effects are weaker or nonexistent. In contrast, search costs, menu costs, switching costs, and information asymmetry tend to be lower in digital markets than in traditional markets, due to the ease of comparison shopping, dynamic pricing, and access to information that digital technologies enable.

All of the Following Are Increased in Traditional Markets Compared