Software as a Service

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Last time we discussed "software as a service," and the evolution of EDP (electronic data processing) services from the early days of physically transporting punched cards and magnetic tape in the 1960s, through the experiments with ASP (application service provision) in the late 1990s, up to the modern SaaS (software as a service) starting around 2005.

To an economist, this evolution, and the apparently increasing success of SaaS, raises several questions:

Economists do not have a grasp on these questions yet. This is a good chance to examine the question, "What is economic analysis, and how does it work?"

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