Contents

List of contributors vii

Preface x

PART I PROLOG

1 The economics of the Internet: an overview 3

Johannes M. Bauer and Michael Latzer

PART II THEORETICAL FOUNDATIONS

2 The industrial organization of the Internet 23

Gunter Knieps and Johannes M.

3 The Internet as a complex layered system 55

Stephen J. Schultze and Richard S. Whitt

4 A network science approach to the Internet 72

Volker Schneider and Johannes M. Bauer

5 Peer production and cooperation 91

Yochai Benkler

6 The Internet and productivity 120

Carol Corrado and Bart van Ark

7 Cultural economics and the Internet 146

Christian Handke, Paul Stepan and Ruth Towse

8 A political economy approach to the Internet 163

Patricia Mazepa and Vincent Mosco

PART III INSTITUTIONAL ARRANGEMENTS AND INTERNET ARCHITECTURE

9 Competition and antitrust in Internet markets 183

Justus Haucap and Torben Stuhmeier

10 The economics of Internet standards 211

Stanley M. Besen and George Sadowsky

11 The economics of copyright and the Internet 229

Sacha Wunsch- Vincent

12 The economics of privacy, data protection and surveillance 247

Ian Brown

V

vi Handbook on the economics of the Internet

13 Economics of cybersecurity 262

Hadi Asghari, Michel van Eeten and Johannes M. Bauer

14 Internet architecture and innovation in applications 288

Barbara van Schewick

15 Organizational innovations, ICTs and knowledge governance: the case of

platforms 323

Cristiano Antonelli and Pier Paolo Patrucco

16 Interconnection in the Internet: peering, interoperability and

content delivery 344

David D. Clark, William H. Lehr and Steven Bauer

PART IV ECONOMICS AND MANAGEMENT OF APPLICATIONS AND SERVICES

17 Internet business strategies 365

Johann J. Kranz and Arnold Picot

18 The economics of Internet search 385

Hal R. Varian

19 The economics of algorithmic selection on the Internet 395

Michael Latzer, Katharina Hollnbuchner, Natascha Just and Florian Saurwein

20 Online advertising economics 426

Wenjuan Ma and Steven S. Wildman

21 Online news 443

Lucy Kting, Nic Newman and Robert G. Picard

22 The economics of online video entertainment 458

Ryland Sherman and David Waterman

23 Business strategies and revenue models for converged video services 475

Yu-li Liu

24 The economics of virtual worlds 495

Isaac Knowles and Edward Castronova

25 Economics of big data 510

Claudio Feijδo, Jose-Luis Gdmez-Barroso and Shivom Aggarwal

PART V PAST AND FUTURE TRAJECTORIES

26 The evolution of the Internet: a socioeconomic account 529

D. Linda Garcia

27 From the Internet of Science to the Internet of Entertainment 553

Eli M. Noam

Index 571