How are our societies being transformed by internet and digital economics? This book provides an accessible introduction to the economics of the internet and a comprehensive account of the mechanisms of the digital economy. Leading scholars examine the original economic and business models being developed as a result of the internet system, and explore their impact on our economies and societies. Key issues are analysed, including the development of open source software and on-line communities, peer-to-peer and online sharing of cultural goods, electronic markets and the rise of new information intermediaries, e-retailing and e-banking. The volume examines how internet and digital economics have transformed the organization of firms, industries, markets, commerce, modes of distribution, money, finance, and innovation processes, and provides the analytical tools to understand both these recent transformations and the likely future directions of the 'New Economy'.
Eric Brousseau is Professor of Economics at the University of Paris X. Nicolas Curien serves as Commissioner for the French Regulation Commission for Electronic Communications and Postal Services (ARCEP). He is also Professor of Economics at the Conservatoire National des Arts et Metiers, Paris.
Figures; Tables; Notes on contributors; Acknowledgements; 1. Internet economics, digital economics Eric Brousseau and Nicolas Curien; Part I. Toward a New Economy?: 2. Evolution of the New Economy business model William Lazonick; 3. Discourse on the New Economy: passing fad or mobilizing ideology? Patrice Flichy; 4. The internet boom in a corporate finance retrospective Ulrich Hege and Sebastien Michenaud; Part II. On-line Communities: 5. Information goods and online communities Michel Gensollen; 6. Online consumer communities: escaping the tragedy of the digital commons Nicolas Curien, Emmanuelle Fauchart, Gilbert Laffond, Jean Laine and Francois Moreau; 7. Network cooperation and incentives within online communities Godefroy Dang Nguyen and Thierry Penard; Part III. Network Externalities and Market Microstructures: 8. The internet and network economics Nicholas Economides; 9. E-commerce, two-sided markets and info-mediation Alexandre M. Gaudeul and Bruno Jullien; 10. The economics and business models of prescription in the internet Pierre-Jean Benghozi and Thomas Paris; Part IV. Producing, Distributing and Sharing Information Goods: 11. Bundling and competition on the internet Yannis Bakos and Erik Brynjolfsson; 12. Pricing information goods: free vs. pay content Marc Bourreau and Virginie Lethiais; 13. Open software: knowledge openness and coalition in cyberspace Dominique Foray, Sylvie Thoron and Jean-Benoit Zimmermann; 14. Simulating code growth in libre (open-source) mode Jean-Michel Dalle and Paul A. David; Part V. How e-Markets Perform: 15. Economic insights from internet auctions Patrick Bajari and Ali Hortacsu; 16. Consumer search and pricing behaviour in internet markets Maarten Janssen, Jose Luis Moraga-Gonzalez and Matthijs Wildenbeest; 17. Are neighbors welcome? E-buyer search, price competition and coalition strategy in internet retailing Herve Tanguy and Jacques Laye; 18. Online bidding and online buying on the same website Marc Bourreau and Christian Licoppe; Part VI. Evolving Institutional Infrastructures: 19. An economic analysis of conflicts resolution in cyberspace Bruno Deffains, Philippe Fenoglio and Yannick Gabuthy; 20. Payment and the internet: issues and research perspectives in the economics of banking David Bounie and Pierre Gaze; 21. Electronization of Nasdaq: will market makers survive? Delphine Sabourin and Thomas Serval; 22. Multilevel governance of the digital space: does a second rank institutional framework exist? Eric Brousseau; Part VII. The Impacts of the Internet at the Macro Level: 23. Mobile telephony and internet growth: impacts on consumer welfare Gary Madden, Michael Schipp and Joachim Tan; 24. Globalization, the internet and e-business: convergence or divergence in cross-country trends? Kenneth L. Kraemer and Jason Dedrick; 25. ICTs and inequalities: the digital divide Alain Rallet and Fabrice Rochelandet; References; Index.