Since virtually anything can be purchased or traded for on the internet, it’s worth reviewing some basic economic concepts about markets, and how companies try to position themselves within the marketplace online. We’ll talk about concepts such as information costs, experience goods, lock-in, switching costs, signaling, perfect markets, liquidity, and others, and discuss how they influence user experience design. Knowing a bit about economics not only makes you sound smarter (we hope), but can help you bring increased value to any project.