DSpace at MIT
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Mostrando recursos 1 - 20 de 67
1.
Internet Economics - Bailey, Joseph P.
The Internet, a growing network of networks, is an often touted and often misunderstood
technology. It has its own infrastructure complete with service providers, private networks, user
communities, international links, etc. similar to telephone or telegraph industries. However, the
Internet is more decentralized and less application-specific than traditional telecommunication
industries. These differences extend beyond the technology of the Internet to the economics and
policies.
This paper explores Internet economics, a growing field which encompasses the technology,
economics, and policy surrounding the Internet. It identifies different communities who have
overlapping interests in this field and how their preconceived notions of how the Internet operates
create contradictory views on how this...
2.
Opening the Set-Top Market - Bailey, Joseph P.
As the cable television networks transition from a broadcast-only network, to a high-bandwidth
two-way network, the importance and functionality of the set-top box increases. However,
developments in the set-top box industry have been restrained by the control the cable companies
have over their equipment. Currently, a set-top box includes closed, proprietary technology
which prohibits its use on other cable systems' networks.
This paper explores the possibility of abandoning closed, proprietary set-top box standards in
favor of open standards. This "opening" of the set-top box is not a trivial matter since it
challenges cable companies' concerns about security, quality, etc. The paper includes a policy
analysis of the impact...
3.
Internet Economics: What Happens When Constituencies Collide? - Bailey, Joseph P.; McKnight, Lee
This paper describes the emerging field of Internet
Economics and some of the constituencies which are
shaping it. It defines the motivating factors for
looking at this area, reviews some recent research
results, and explores areas of overlapping interest.
The paper concludes with six recommendations for
further work.
different academic disciplines which have done work
related to Internet economics: technology, economics,
and policy. Each of these areas has important
contributions to make to the field but there has been
little consensus across disciplines (or even within
disciplines) on which direction to take. Figure 1
shows a Venn diagram which tries to characterize the
constituencies' current motivation to look at Internet
economics.
5.
A Contribution to the Understanding of Illegal Copying of Software: Empirical and Analytical Evidence Against Conventional Wisdom - Osorio, Carlos A.
This paper analyzes the causes of illegal copying and its effects in the software market across 66
countries. By studying the aggregated and joint effects of different variables, the analysis shows that
supply constraints in the software market, shortage of after-sale support, and characteristics legal
framework are major drivers of illegal copying when controlling for income per capita. It also concludes
there is enough evidence to show there is a threshold of illegal copying over which its aggregated effect on
the software market is positive, and this is an efficient mechanism for market creation. Thus, allowing
illegal copying in some countries and at certain periods of...
7.
A Game Theoretic Modeling and Analysis for Internet Access Market - Correa, Hector; Weiss, Martin; Shin, Seung-Jae
In this paper, we study the local dial-up Internet access market using a game theoretic model. In
particular, we consider the Nash equilibrium of the service providers and examine their behavior
on investment and output level. We calibrate this model to fit the industry structure and data
found in rural markets. In the first part of the paper, we examine the Internet industry structure
and its characteristics. In the latter part of the paper, we create an abstract Cournot duopoly
model, in which real world cost and revenue projection will be used to find an Internet access
market equilibrium and its social welfare. These analyses allow...
9.
Internet Interconnection Economic Model and its Analysis: Peering and Settlement - Shin, Seung-Jae; Weiss, Martin
Peering and transit are two types of Internet interconnection among ISPs.
Peering has been a core concept to sustain Internet industry. However, for the
past several years, many ISPs broke their peering arrangement because of
asymmetric traffic pattern and asymmetric benefit and cost from the peering.
Even though traffic flows are not a good indicator of the relative benefit of an
Internet interconnection between the ISPs, it is needless to say that cost is a
function of traffic and the only thing that we can know for certain is
inbound/outbound traffic volumes between the ISPs. In this context, we suggest
Max {inbound traffic volume, outbound traffic volume} as...
11.
A Proposal for Efficient Use of the Television Spectrum - Weiss, Martin
It is widely recognized that broadcast spectrum is utilized inefficiently. The principle technical cause of this inefficiency is inexpensive receiver design. In addition, the economics of the industry are such that users do not pay the opportunity costs of spectrum associated with these receivers. In this paper, I develop an approach that would internalize the spectrum opportunity costs so that consumers will make decisions that are economically more rational in terms of their choice of the program delivery channel.
13.
Committee Jurisdiction and Internet Intellectual Property Protection - deFigueiredo, John
This paper examines the impact of increasingly common congressional committee jurisdictional
turf wars on policy outcomes. It develops a theoretical model that shows how legislators balance
the benefits of expanded committee jurisdiction against preferred policy outcomes, yielding
predictions that are different from the traditional committee-dominance theories. The theory
predicts that a) senior members, and members who are in safe districts are most likely to challenge
another committee's jurisdiction; b) policy proposals may be initiated off the proposer's ideal
point in order to obtain jurisdiction over an issue; c) in many cases, policy outcomes will be more
moderate with jurisdictional fights than they would be without these turf...
14.
Interconnection Payments in Telecommunications: A Competitive Market Approach - Gabel, David
In this paper, we first discuss the concept of "Bill-and-Keep" whereby the party that receives a
call pays for receiving the call. We explore if this outcome is efficient and consistent with
competitive markets. Following the discussion of Bill-and-Keep we offer an explanation of why
the flow of traffic has been imbalanced between incumbent local exchange carriers (ILECs) and
competitive local exchange carriers (CLECs). We explain that this outcome is the natural
outcome of the barriers to entry created by the incumbents in their refusal to provide collocation
to internet service providers (ISPs).
15.
Optical Networks and the Future of Broadband Services - Lehr, William; McKnight, Lee; Ferreira, Petro
The evolution of broadband services will depend on the widespread deployment of optical
networks. The deployment of such networks will, in turn, help drive increased demand for
additional capacity. In this world, service providers will have a growing need to be able to
flexibly adjust capacity to accommodate uncertain and growing demand.
In this article, we present a cost model that highlights the advantages of new optical networking
technologies such as Dense Wavelength Division Multiplexing (DWDM) over traditional
architectures for optical networks. This analysis highlights the increased flexibility and
scalability of DWDM networks, which lowers the deployment costs of such networks in light of
growing and uncertain demand.
The...
16.
Best Effort versus Spectrum Markets: Wideband and Wi-Fi versus 3G MVNOs? - McKnight, Lee; Linsenmayer, Raymond; Lehr, William
This paper asks is whether (i) 3rd generation wireless services, as embodied in the
planned and soon to be offered services emerging first in Asia and Europe, or (ii) the
unlicensed wireless services such as 802.11 or wi-fi but also including more advanced
wideband and ultrawideband (UWB) services which are being experimented with
primarily in North America, offer more compelling visions for advanced wireless
services. we conclude that secondary spectrum markets are important for the viability of
the 3G industry, and not only for reasons of efficiency. One large difference between 2G
and 3G networks, observed in our models, was that voice services alone would not
generate sufficient...
19.
Show Me the Money: Contracts and Agents in the Service Level Agreement Markets - McKnight, Lee; Lehr, William
Delivering real-time services (Internet telephony, video conferencing, and
streaming media as well as business-critical data applications) across the Internet requires
end-to-end quality of service (QoS) guarantees, which requires a hierarchy of contracts.
These standardized contracts may be referred to as Service Level Agreements (SLAs).
SLAs provide a mechanism for service providers and customers to flexibly specify the
service to be delivered. The emergence of bandwidth and service agents, traders, brokers,
exchanges and contracts can provide an institutional and business framework to support
effective competition.
This article identifies issues that must be addressed by SLAs for consumer
applications. We introduce a simple taxonomy for classifying SLAs based on the identity
of...
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