I can't figure out which ones are the higher order goods and lower order goods during the dot-com bubble. Maybe I don't really understand the meaning of higher and lower orer goods. I think If someone can give examples of higher order goods and lower order goods during the dot-com bubble, I will have a better understanding of their meaning, thank you
From Mises on Money:
Some goods are consumed immediately. Mises called these goods of the first order (p. 93). Production goods that produce first-order goods he calls goods of the second order (p. 94). A piece of bread is a first-order good. So is a piece of toast. To get a piece of toast, you need a toaster, a second-order good, and electricity, a second-order good (in this example). [...] The entire production process is a series of individual decisions to allocate present goods to their highest uses. Some goods are directly consumed now (bread). Others are directly consumed later (toast). Some are never directly consumed (toasters). They are used to produce goods that are directly consumed (toast). Other goods — goods of a higher order — are used to produce things (steel) that are used to produce second-order goods (toasters).
Some goods are consumed immediately. Mises called these goods of the first order (p. 93). Production goods that produce first-order goods he calls goods of the second order (p. 94).
A piece of bread is a first-order good. So is a piece of toast. To get a piece of toast, you need a toaster, a second-order good, and electricity, a second-order good (in this example). [...]
The entire production process is a series of individual decisions to allocate present goods to their highest uses. Some goods are directly consumed now (bread). Others are directly consumed later (toast). Some are never directly consumed (toasters). They are used to produce goods that are directly consumed (toast). Other goods — goods of a higher order — are used to produce things (steel) that are used to produce second-order goods (toasters).
Basically higher order goods are goods that are furthest away from consumption. So, "during the dot-com bubble" the highest order goods would be much the same as highest order goods today...raw elements mined from the earth, like gold, silver, coal, iron, crude, etc...and things collected from the environment, like lumber, latex, silicon, etc....as those are the materials farthest away from consumption.
Also, here's an interesting article that may help clear things up:
"Is Housing a Higher-Order Good?"
I'd wait for verification from someone else, but i think higher order goods are capital goods that are more illiquid. Lower order goods are referred to when the good is closer to being consumed. So in terms of the 'dot com' bubble i would guess that the higher order goods would be stocks and bonds that give the companies money. The lower order goods would be the servers and routing information as well as code and content of the digital goods. Higher order good = stock investment, then physical capital (servers), then code and content (video game) = lower order. (we'll assume its a digital distribution so no physical production takes place).
Eating Propaganda
What do you mean i don't care how your day was?!
Higher order goods are investment good which promises a return in the future and you can evaluate that return now discounting it by the interest rates of the market. The ones with the highest order are those which promises the bigger returns, but for the most distant future, that's why their value in the present is the one that increases most when the interest rates artificially come down.
In the dot com bubble, the dot com companies were in their majority only promising returns, not giving any. It was an investment in the distant future. So, even if the production process of the goods those companies had planned to sell was short the stockholders still had to wait the company start its activities and wait for a long time before getting their first profit.
(sorry for the bad English)