Internet and Digital Economics

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'.

'This is an unusually rich volume which, in twenty-five chapters written by international experts, considers in varied and original ways aspects of the digital economy from communities to markets to institutions. The editors impose a structure on the whole. It is both challenging and rewarding.' Martin Cave, Professor and Director of the Centre for Management under Regulation, Warwick Business School, University of Warwick, 'From on-line communities to open source software, from multi-sided markets to Internet auctions and search, from Internet governance to the Internet bubble; this comprehensive collection of 25 essays offers a wealth of information and theoretical thinking about key aspects of information and communication technologies. The result is an important resource for all those interested in the economics of the Internet.' Jean Tirole, Scientific Director, Institut d' Économie Industrielle, Toulouse, 'This excellent volume is a valuable resource both for those already deeply involved with Internet scholarship and policy and for readers looking for an introduction to the cutting edge issues in digital economics and business strategy. Brousseau and Curien have assembled an impressive array of scholars whose work covers the spectrum of economic, financial, organizational, and cultural impacts of the Internet and evolving models for its use. Particularly useful is the way that, in each area of coverage, this volume provides an introduction, an explanation of relevant analytical tools, and an application of those tools to important, current problems. The result is a book that provides essential context and background while at the same time advancing the state of our knowledge about digital networks. This volume is a 'must read' for anyone working on, or just interested in, Internet policy.' Howard A. Shelanski, Professor of Law, University of California, Berkeley, 'This book on internet and digital economics presents a multi-perspective and multi-disciplinary analysis. Brousseau and Curien have gathered many of the most insightful students of the internet into this one volume. The chapters are individually strong. Collectively, they present a powerful and holistic treatment of the history of the internet, pricing, open source, communities, regulation, and the business of e-commerce. An ambitious and highly successful endeavor.' Bruce Kogut, Eli Lily Professor of Innovation, Business and Society, INSEAD

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 Métiers, Paris.