Dot-Com Debacle and the Return to Reason

The bubble burst. Within months, dot-com once-millionaires were scratching around for jobs. Nevaer proves that the laws of classical economics were never repealed, and that the New Economy was more Old Economy than many people believed. His briskly provocative new book shows how the return of common sense is opening fresh opportunities for wealth creation in badly battered industries-the entertainment industry especially-and offers five keys to understanding the online economy overall. The crash, says Nevaer, was inevitable. Characteristics of the New Economy created market imperfections that led to total failures. The negative effects were not isolated. They hurt the whole economy. The online community also fostered undesired social outcomes-pathological consumer behavior-but the potential for more beneficial gains is still indisputable. Nevaer applies the fundamental theories and ideas of classical economics to the world online, providing a concise understanding of what properly belongs to the Old Economy, and what belongs to the New. He examines the real-that is, sustainable-components of the New Economy centered on five industries: publishing, music, video games, and, to some dismay, gambling and adult entertainment. Meticulously researched and documented, Nevaer's book is an authoritative, probing account for analysts, researchers, students, and scholars. As a study of American culture and society, it is an entertaining read for knowledgeable people everywhere.