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"In aggregate, consumers trying to obtain these products are overpaying," said Glen Whitney, a mathematician and a former quantitative analyst at the hedge fund Renaissance Technologies, who was asked to evaluate Swoopo.
A number of them have evolved to aggregate consumers' social profiles at various networks, he notes.
Today, media companies on the Web aggregate consumers around specific interests and product niches (technology, cooking, travel, music, movies, sports, finance) much more efficiently.
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These networks will aggregate consumer demand - crowd sourcing ideas for businesses, innovating and changing the traditional power relationship between consumer and business.
Consider now the American economy, in which Apple has just released its iPhone 5, and some economists say they believe that the release itself will noticeably increase aggregate consumer spending.
Samuel Addy, an economist at the University of Alabama, estimates the law's total cost taking into account productivity declines, increased enforcement cost, and declines in aggregate consumer spending and tax revenue since so many workers have left in the billions.Then there are the less quantifiable costs.
The ratio dropped recently to 12.5 percent from its peak of 14 percent in 2007, Ms. Duke said, as a result of what she called "the largest annual decline in aggregate consumer credit outstanding in the nearly 70-year history" of record-keeping for that statistic.
In aggregate, consumer Web companies raised less than $1 billion in the quarter.
Open image in new window Fig. 7 Sizes of the buyer group that maximize aggregate consumer surplus and per-member consumer surplus for different values of parameter z.
Open image in new window Fig. 6 Changes in aggregate consumer surplus as a function of changes in the size of the buyer group, s.
Figure 6 depicts how the aggregate consumer surplus evolves as the size of the buyer group varies from 0 to 1 when parameter z takes value z = 2.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com