the digital ecoonomy

• The digital economy refers to the shift in economic activities to digital platforms and services, encompassing online shopping, social media, and digital communication technologies.
• Platforms like Facebook, Amazon, and dating apps connect users (e.g., buyers and sellers, advertisers and consumers), creating a two-sided market.
• Externalities arise when the actions of users on one side of the market affect users on the other side. For instance, an increase in Facebook users benefits advertisers by providing a larger audience.
• • Large platforms like Google, Amazon, and Alibaba have become dominant players in their markets, controlling significant shares of e-commerce and digital services.
• • Automation: Digitalization is also linked with increased automation, where machines replace workers in routine tasks, a trend expected to grow. According to PwC, up to 30% of jobs in the UK could be at risk of automation by 2030.