Monday, April 18, 2011

Blog 11

A commercial economy is defined as the exchange in terms of a price. On the other hand, a sharing economy is defined in terms of the value of an object or service compared to another. In a sharing economy goods are also traded for their value not for their monetary value.

These two different economies are used to train us to deal with the dispersion and exchange of goods and services. We swap thing amongst one another in a sharing economy while we trade money for other things in a commercial economy. Simply just buying something at the store is a good example of a commercial economy, while a site like wikipedia is a good example of a sharing economy, where you can use the site for information as well as upload information for others to use.

These two economies are important to Lessig's main argument. He wants to show that while both economies matter to one another, they cannot exist without the other. This is quite similar to the RO/RW argument Lessig brings up and how the complete understanding of these two economies can lead to better business success online.

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