Web Note 4.1: Markets Without Money

Most modern markets involve the direct use of money. But the forces of supply and demand can operate without using money in the exchange -- goods or services can be directly bartered for other goods or services. Direct barter requires that someone else want what you have and have what you want. The Web, of course, makes it much easier than in the past to locate such a buyer or seller.

Web Site:
BarterSystems, Inc. is a commercial service that arranges business-to-business barters. They use a system of internal credits called "trade dollars."

Article:
In "Cooking-Pot Markets," (First Monday, March 1998) Rishab Aiyer Ghosh argues that the Internet itself is a type of market in which we trade ideas and reputations. This seems a bit of a stretch, but should help you think about what a market is and what a market is not.

Web Note 4.2: Income and Demand

Income affects what we buy as well as how much we buy. Advertisers are always looking for ways to target their efforts toward people in particular income ranges. Magazine publishers try to convince advertisers that their magazine reaches people with the appropriate income and tastes for the advertiser's product.

Web Sites:
Journalism.org's 2004 report on the state of the news media looks at magazine readership by age and income. Hudson Valley Magazine and Utah Business Magazine are two examples (among many) of magazines with high income readers. With a little digging on the web you can probably find out what your favorite magazine tells potential advertisers about the income, wealth and tastes of its readers.