The Study on Web Based E-Trade and Its Economics Effects: The Conducting Mechanism through CCI

The cost of commercial intermediation (CCI), companying with trade, one of the most common economy activities and permeates the market everywhere, effects the economy enormously, while it may be changed as the web based new trade style adopted. This paper focuses on these changes which will account for the lower CCI, and moreover result in the increased trade amount and decreased price. Using the classical microeconomic model, the effect on currency demands and invest can be calculated then. Moreover, we deduced the conclusion that the market, in itself, has the self-prompt or self-magnify mechanism in informationization process.