Question

Is no secret that the use of the internet, mobile applications, and social media has greatly increased collaboration, and peer to peer communication in the past 25 years. Is this ever-increasing collaborative environment helping improve allocative efficiency?

Answer 1

It shall be noted that allocative efficiency is an economics concept that shows that economy is in the state where the production is as per consumer preference and the production takes place up the point where marginal benefit to consumers is equal to the marginal cost of production.

The usage of internet , mobile applications and social media has led to the collaborative revolution.

The collaborative environment has helped in taking steps forward towards equitable distribution of food, water, education, electricity distribution, waste avoidance & waste management, transportation facility, security and support.

There is allocative efficiency both in production and consumption that is getting realized.

The government help is reaching in the remotest of region as soon as issues are getting highlighted & spread virally over the internet and social media. The supply of essential items are ensured such that it is made adequately in the areas where they are needed the most and is restricted in the areas where people does not need them at all.

The public distribution system (PDS) is getting streamlined. The corruption is being checked for fear of getting highlighted on social media.

People have become vigilant and net-savvy and fearless to post issues on social media that gathers support and bring pressures on the government for prompt action.

This has led to the environment where people's rights are fulfilled and allocative efficiency is getting realized.