For example, Anania and Solomon argue, in their or that its circumscribed treatment in Internet Economics is a genuine limitation of the book. There are now, for example, paper entitled ''Flat-The Minimalist Price,'' that in a distributed data processing environment:
interested parties who are willing to argue that the true price point for certain Internet services, including access, is zero.
There are new applications and technologies-for instance, the
The old revenue requirement game may no longer work. Convenso-called push technologies-whose workings contribute furtional economics is leading to some bizarre rates and service ther to network congestion, but also tend to complicate the offerings. The underlying digital process subverts the previous rules, because computer network architecture does not respect design of underlying relationships between network providers artificial physical boundaries which previously regulated access and users. And, then, there are initiatives such as Internet II, and interconnection.
which suggest that cost control and pricing issues will fragment the so-called information superhighway.
Is Internet Economics worth reading? Is it worth the time Even more interesting are the views expressed in Mitrabarun and effort for readers with a more general interest in the subject? Sarkar's ''Internet Pricing: A Regulatory Imperative.'' Sarkar
The answer in each instance is that it is. Internet Economics argues that the Internet market should be transformed incremenmakes a valuable contribution to the now-burgeoning (and tally, and that efforts to introduce innovative pricing models largely digital) literature about the economics of wide-area netshould be tempered by flat pricing of certain services and some works. Its principal strength is that within its defined setting, significant degree of ongoing regulation.
which is, basically, the telecommunications infrastructure of the In Sarkar's view, the problem of policy-making for the In-Internet, Internet Economics provides a coherent view of the ternet is rooted in the fact that the effectiveness of applications basic economic issues before network operators and planners. requiring real-time, high-bandwidth service is basically at odds That its approach to the solutions to these problems is not as with the current Internet technology (which was designed to balanced or as timely as it might be is a shortcoming, but not support low-bandwidth applications such as electronic mail, file one that should dissuade readers with a serious interest in the transfer services, etc.). Sarkar believes that a continuation of workings of the Internet or the economics of information transflat-pricing schemes works to the disadvantage of users who fer. Economics, the dismal science, is about making choices rely mainly on low-bandwidth applications, because those users when demand outstrips supply. The papers collected in Internet effectively subsidize the users of high-bandwidth applications Economics take us a long way toward understanding the choices and services, while suffering degradation in the quality of serthat define the future of wide-area networking. vice in the process. He worries that ''new applications will drive out traditional uses.'' According to Sarkar, it is likely that given the chance, network operators will use indirect mechanisms such as pricing not merely to control data traffic, but also Christinger Tomer to transform the Internet into an asymmetric structure that is School of Information Sciences more hospitable to new and highly demanding applications like University of Pittsburgh groupware and video conferencing. Sarkar argues further that 135 North Bellefield in an increasingly competitive environment, where network op-Pittsburgh, PA 15260 erators must simultaneously amortize their existing infrastruc-E-mail: ctomer/@pitt.edu ture while capitalizing new technologies and configurations, the tendency toward anti-competitive behaviors must be acknowledged in policy-making and offset by relevant regulation.
Reference
Other noteworthy papers in Internet Economics include the book's Introduction, which offers a clear delineation of the Bailey, J. (1995). Internet economics. Working paper, draft dated Febeconomic (and research) issues with which the contributing ruary 3, 1995. Cambridge, MA: Research Program on Communicaauthors grappled. The chapter devoted to FAQs-frequently tions Policy, MIT.