Analysis on the Increasing Marginal Revenue of the Network Economy

On the basis of discussing the network economy concept and the commentary of the marginal revenue decreasing of traditional economic theory, the concept of network economy has just been put forward in recent years. The reason why such a concept appears is that the information technology, marked by computer network, plays an increasingly important role in economic activities. Some people define network economy as an economic form based on network technology and human capital. This paper points out network economy existing the marginal revenue increasing and analyzes the reasons that influencing the marginal revenue increasing. Broadly defined network economy refers to the economic activities characterized by the application of information technology and information resources based on computer networks or platforms (including the Internet, Intranet, extranet, etc.) in which information and knowledge play a major role.Network economy has changed many aspects of traditional economy, resulting in decreasing marginal cost, decreasing transaction cost in and out of enterprise organizations, and making the effect of increasing scale compensation more prominent. This is of great significance to the information construction in China.