Frequently asked questions
- Isn't Rewards an expensive way to allocate resources?
- Why not use price to solve allocation problems?
- How hard would it be to introduce a Rewards System?
- Are there any alternatives available to Edentiti Rewards?
Isn't Rewards an expensive way to allocate resources?
Until recently it would have been difficult and expensive to introduce Rewards systems. Recent changes in computing power, in the spread of the Internet, in electronic identification services and in information systems construction techniques have made it relatively inexpensive to set up a Rewards program. Also the design of Rewards is to make the programs voluntary. You do not have to join a Rewards program and if you abuse the system you are excluded. Depending on the number and size of Rewards transactions the cost will be from a fraction of one percent up to a maximum of 5% of turnover.Why not use price to solve allocation problems?
Price is the traditional tool used by economists to solve resource allocation problems. The difficulty with price is that it rarely reflects the true value to society of the goods or service and it even more rarely reflects the true cost of the product or service. Most problems in society are investment and infrastructure issues rather than consumption issues and price is better at allocating resources for consumption rather than investment.
How hard would it be to introduce a Rewards System?
The difficult part of introducing a Rewards system is getting agreement from governments. The technology of electronic identification is solved, there are many electronic market places and people understand Rewards so there are no new things for the population to learn. Also the systems are always voluntary and people can use other methods so the systems can evolve from simple implementations to more complex.
Are there any alternatives to Edentiti Rewards?
Not at the present.
