The transaction superhighway - Innovation and policy implications

With business and financial transactions increasingly being carried out using modern telecommunication and information services, the potential for reaping commercial and economic benefits is enormous. Not surprisingly, the potential drawbacks are large too. Companies with widely differing backgrounds are planning, and in some cases scrambling, to offer new services. Some people welcome them; others regard them with suspicion or even hostility This comment examines some innovation and policy aspects associated with the transition to a society in which services such as home banking and electronic retailing are commonplace. It points to some policy tensions that will probably hinder innovation and market development.