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A Primer on Internet Economics: Economic Aspects of Digital Information Technologies


  • Gilroy, Bernard Michael


One of the major economic developments in the world of the last decade has been the complementary globalization of production and the rapid development of information and communication technology as exhibited through the emergence of the Internet. The preliminary analysis presented here is guided by the belief that although the Internet has received a great deal of publicity, there still remain areas of vacuum with regard to research on the economics of the Internet and a more wide-spread understanding of the prime issues involved. After a brief history of the evolution of the Internet industry in section 2, a segmentation map of the Internet industry is presented in order to aid one in understanding potential Internet issues that will affect academics, political regulators, industry leaders, and the general public in the future. Equipped with this greater understanding of the way the Internet functions, economic issues and Internet concepts are selectively identified and discussed within the basic structure of interoperability, network externalities and the equitable statistical sharing of Internet resources.

Suggested Citation

  • Gilroy, Bernard Michael, 1999. "A Primer on Internet Economics: Economic Aspects of Digital Information Technologies," MPRA Paper 17971, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17971

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    References listed on IDEAS

    1. Rishab Aiyer Ghosh, 1998. "Cooking pot Markets: an Economic Model for the Trade in Free Goods and Services on the Internet," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(1), July.
    2. Salop, Steven C & Scheffman, David T, 1983. "Raising Rivals' Costs," American Economic Review, American Economic Association, vol. 73(2), pages 267-271, May.
    3. Gilroy, Bernard Michael, 1998. "International Competitiveness, Multinational Enterprise Technology Clubs and the Government Interface," MPRA Paper 17983, University Library of Munich, Germany.
    4. Nicholas Economides, 1998. "Raising Rivals' Costs in Complementary Goods Markets: LECs Entering into Long Distance and Microsoft Bundling Internet Explorer," Working Papers 98-03, New York University, Leonard N. Stern School of Business, Department of Economics.
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    More about this item


    Globalization; Internet industry; network concepts;

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services


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