Modern Foundations of Internet Economy

Abstract

The sense of Internet economy is seen by its basic principles: freedom of entrepreneurial activities. Another principle is domination and active development of small entrepreneurship, domination of service sphere (mainly trading) in the structure of GDP, i.e., development of the economic system according to post-industrial type, domination of Internet deals, and transformation of transaction relations in favor of their Internetization, minimization of transaction costs, achievement of optimal ratio of demand and offer in sectorial markets, availability of the corresponding infrastructure, based on the developed system of online payments and the system of Internet navigation, active involvement of economic system in the process of international globalization and integration taking place in the global economy, internationalization of economic activities, and high share of international business activity in the structure of entrepreneurship. All public product and, accordingly, production, being in a situation of intensive development of development of Internet economy, come into the stage of their division into two full parts: information sphere, where intellectual products are directly created, and material sector within which common products and services are issues that are characterized by limitation and that are a basis of monetary exchange. Each of the stated elements cannot work without the viewed parts in the conditions of evolution of the “new” economy. Internet assets are inclined to create a so called dot com bubble that grew in late 1990s, reached its peak in 2000, and disappeared in 2001. That time was peculiar for establishment and quick development of commercial Internet projects that were expected to have large scale.