Economics Perspectives on the Internet

The information technology sector of the United States economy, spurred on by the expansion of the Internet, has undergone explosive growth. According to one estimate, in 1998 Internet-related industries led to the creation of over 1.2 million jobs and generated more than $300 billion in revenue. At the same time the Internet has expanded immensely. As of December 1999, it was estimated that more than 4.9 million commercial websites had emerged, and in the closing months of the year, that number was increasing at a rate of almost 500,000 per month. The rapid growth of the 'Information Economy' has drastically changed the manner in which commercial transactions are conducted, as anything from material goods (such as books) to information goods (such as databases) can be procured with the ease of a mouse click. This essential new book investigates the underlying economics of certain facets of the Internet. By examining recent literature addressing economic aspects of the Internet and electronic commerce, as well as more traditional literature on pricing practices and market structure, this book serves as a roadmap of the current terrain in Internet-related economic matters, as well as a framework for future analysis.