net gain? - Inter - opportunity costs as well as economic costs must be paid when online

Business Horizons, Sept-Oct, 1995 by Dennis W. Organ, Joseph H. Foegen

(Inter) Net Gain?

Last year I decided to subscribe to CompuServe and America On-line, connecting to their services from my computer at home. I wasn't sure just what I would get from these arrangements, but whatever advantages were to be derived from access to the information highway, I certainly did not want to forfeit them.

During the year I also tried to keep up with the times by attending two university-sponsored training sessions on exploring the Internet. I eagerly accepted offers to have special software installed on my computer at the office, so that I could cruise the cyberspace there for any strategically valuable tidbits of information that otherwise might pass me by.

Now that I have logged hundreds of hours on-line, both from school and home, I can report that the only useful intelligence I have garnered so far from this activity is Roger Ebert's movie reviews. (I particularly wanted his blessing before taking off to go see "The Bridges of Madison County.") Plus, I guess you could add to that the modest pleasure of reading a couple of sports articles and finding out about a special developer for Kodak's T-Max film. But I never discovered any treasure trove of information for my research or teaching. And I can reassure some troubled readers that I never stumbled onto the salacious cyberporn about which so many are alarmed.

I don't mean to disparage the potential value of the vast stores of information that are "out there." I conclude, though, that one has to have a pretty good idea beforehand of just what one is looking for; and for my purposes, when I know what I want, I find it more efficient to use traditional search methods--such as my own books, the public library, or a phone call to an expert.

My experience, then, prepares me to appreciate what Dr. Foegen has to say about the costs and benefits of 'Net cruising:

Given all the "hype" accompanying the fast-developing "Information Superhighway," enthusiasts especially should be reminded to temper their excitement a bit. Prudence and balance perspective require that costs be addressed also. One kind in particular may be too hidden to see at first. More abstract, and therefore more likely overlooked, opportunity costs deserve more attention.

Such a focus does not minimize the substantial economic costs. Fiber-optic cable and tons of other equipment create a need for considerable capital outlay, even while infrastructure is being built. Given technology's lightning-fast development, necessary maintenance and updating mean that appreciable relief from such spending is unlikely, at least in the near future. Before the whole country is on-line, many billions of dollars will certainly have been invested.

Nor does it overlook another hazard that can have both psychological and practical impact: that of becoming a "surfing potato"--the high-tech cousin of the "couch potato" long found lounging in front of television sets. Meanwhile, the Net-engaged can become subject to being "flamed" and "letter-bombed," if those "on the other end" become irritated. "Flaming" is sending insulting e-mail. "Letter-bombing" is filling an e-mail box with an impossible volume of messages. Ignoring either could be risky.

Nevertheless, opportunity costs are both real and practical; they deserve serious attention. Though discussed mostly by professional economists, they affect everyone, whether realized or not. One definition of opportunity costs is the value of what has been forgone while gaining something else. For example, the cost of a year at college involves more than out-of-pocket payments for tuition, room, and board. Assuming the average person would have to (or want to) work if not in school, what could have been earned during that year amounts to a bypassed opportunity-perhaps worth tens of thousands of dollars. Realistically, those sacrificed short-run earnings should be included in the year's total cost along with the familiar cash outlays.

Shifting from college costs to those concerning the Internet, many examples are possible here too, illustrating that total outlays for such use are much greater than commonly realized. Considering the "addictive" nature of involvement and consequently the long hours spent in front of the PC, that is probably a gross understatement! In no particular order of importance, then, here is a sample of opportunity costs likely to be both incurred and overlooked.

One involves whatever economic value may be placed upon increased stress--as though plenty did not already exist in this hectic world! It might be advantageous at times to have data and messages travel worldwide in split seconds. But interacting at such speed can frequently create or reinforce a "rush, rush" mindset that could eventually become unhealthy. Certainly some kind of price is being paid for operating in a chronically tense atmosphere.

In addition, two mailboxes now need checking regularly. Messages found there must often be answered. Many people find it difficult to keep up with their "snail mail"; now they must cope also with potentially ever more demanding e-mail.