This change has important legal consequences. The law facilitates and regulates exchanges that occur against the background of a particular commercial culture and set of practices. As the culture and practices change, so does the law. Why intermediaries arose in the first place Intermediaries arose because the costs of communication and transportation made the efficiency of the exchange between buyers and sellers tends to decrease with the geographic distance between them. Without intermediaries, it can be difficult, or at least very costly, to get the right product to the right place and the right time.
Search costs A consumer has to locate sellers of the desired goods and services.
Suppose I want to buy a some furniture, and imagine a world without retail outlets and intermediaries delivering to those outlets. Note in passing that this really is the situation of people looking for a lawyer, doctor, dentist, or other professional. There are few effective search procedures that also provide assurances of quality. It would be interesting to consider how the Internet will alter the delivery of professional services. Suppose I decide on a couch produced only in Seattle, Washington.