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Handbook on the Economics of the Internet

Edited by Johannes M. Bauer, Michigan State University, US and Michael Latzer, University of Zurich, Switzerland
As the single most important general purpose technology of recent times, the Internet is transforming the organization, competitive structure and business models of the private, the public and non-profit sectors. In 27 original chapters, leading authors discuss theoretical and applied frameworks for the study of the economics of the Internet and its unique economics as a global information and communications infrastructure. They also examine the effects of the Internet on economic transactions (including social production, advertising, innovation, and intellectual property rights), the economics and management of Internet-based industries (including search, news, entertainment, culture, and virtual worlds), and the effects of the Internet on the economy at large.
Extent: 608 pp
Hardback Price: $330.00 Web: $297.00
Publication Date: 2016
ISBN: 978 0 85793 984 5
Availability: In Stock

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  • Economics and Finance
  • Industrial Economics
  • Innovation and Technology
  • Technology and ICT
The Internet is connecting an increasing number of individuals, organizations, and devices into global networks of information flows. It is accelerating the dynamics of innovation in the digital economy, affecting the nature and intensity of competition, and enabling private companies, governments, and the non-profit sector to develop new business models. In this new ecosystem many of the theoretical assumptions and historical observations upon which economics rests are altered and need critical reassessment.

This Handbook brings together twenty-seven original chapters that discuss theoretical and applied frameworks for the study of the economics of the Internet, encompassing:

• its unique economics as a global information and communications infrastructure
• the effects of the Internet on economic transactions, including social production, advertising, innovation, and intellectual property rights
• the economics and management of Internet-based industries, such as search, news, entertainment, culture, and virtual worlds
• the effects of the Internet on the economy at large

Interdisciplinary in its approach, the Handbook synthesizes the state of knowledge and offers new perspectives for researchers, practitioners, and students.
‘Internet development dynamics are tackled in this Handbook by leading scholars representing mainstream, institutional, evolutionary economics, and political economy perspectives. They show how complex markets for digital technologies and services are evolving. Crucially, they demonstrate why conventional analytical tool kits need to be extended by bridging disciplinary boundaries. This volume offers significant advances in the analysis of technological and institutional change and demonstrates how important it is to acknowledge conflict resolution and tradeoffs as essential aspects of the Internet’s history and its future.’
– Robin Mansell, London School of Economics and Political Science, UK

'The Internet has transformed many fundamental economic facts of life and business, but it is challenging to catalog them all. This topic deserves a comprehensive handbook, and the editors have delivered. The chapters are engaging and lucid, and cover a wide range of topics. The editors were not shy about spanning boundaries between technical detail, economic analysis, and policy relevance. This is a great resource for any modern scholar of the Internet.'
– Shane Greenstein, Harvard Business School, US

‘The Handbook provides an outstanding insight on understanding all kinds of businesses carrying over the information super-highway called the Internet.’
– Science and Public Policy

‘This handbook has the laudable aim of providing an original map of research in the Internet Economics field. It succeeds in this thanks to the editors’ inclusion of theoretical perspectives ranging from the mainstream to institutional and evolutionary economic theory, complex adaptive systems theory, and critical political economy. . . Readers will gain insight into the limitations of the questions that are asked within different economic traditions, but importantly, also into what can be revealed by these theories and empirical methods. Media and communication scholars, not just those with an interest in media economics, will come away from engagement with this handbook with a good understanding of the assumptions underpinning the contributions economists are making to contemporary debate about the consequences of the continuous evolution of digitally mediated markets.’
– European Journal of Communication
Contributors: S. Aggarwal, C. Antonelli, H. Asghari, J.M. Bauer, S. Bauer, Y. Benkler, S.M. Besen, I. Brown, E. Castronova, D.D. Clark, C. Corrado, C. Feijóo, D.L. Garcia, J.-L. Gómez-Barroso, C. Handke, J. Haucap, K. Hollnbuchner, N. Just, G. Knieps, I. Knowles, J.J. Kranz, L. Küng, M. Latzer, W.H. Lehr, Y.-L. Liu, W. Ma, P. Mazepa, V. Mosco, N. Newman, E.M. Noam, P.P. Patrucco, R.G. Picard, A. Picot, G. Sadowsky, F. Saurwein, V. Schneider, S.J. Schultze, R. Sherman, P. Stepan, T. Stühmeier, R. Towse, B. Van Ark, M. Van Eeten, B. Van Schewick, H.R. Varian, D. Waterman, R.S. Whitt, S.S. Wildman, S. Wunsch-Vincent



1. The Economics of the Internet: An Overview
Johannes M. Bauer and Michael Latzer

2. The Industrial Organization of the Internet
Günter Knieps and Johannes M. Bauer

3. The Internet as a Complex Layered System
Stephen J. Schultze and Richard S. Whitt

4. A Network Science Approach to the Internet
Volker Schneider and Johannes M. Bauer

5. Peer Production and Cooperation
Yochai Benkler

6. The Internet and Productivity
Carol Corrado and Bart Van Ark

7. Cultural Economics and the Internet
Christian Handke, Paul Stepan and Ruth Towse

8. A Political Economy Approach to the Internet
Patricia Mazepa and Vincent Mosco

9. Competition and Antitrust in Internet Markets
Justus Haucap and Torben Stühmeier

10. The Economics of Internet Standards
Stanley M. Besen and George Sadowsky

11. The Economics of Copyright and the Internet
Sacha Wunsch-Vincent

12. The Economics of Privacy, Data Protection and Surveillance
Ian Brown

13. Economics of Cybersecurity
Hadi Asghari, Michel Van Eeten and Johannes M. Bauer

14. Internet Architecture and Innovation in Applications
Barbara Van Schewick

15. Organizational Innovations, ICTs and Knowledge Governance: The Case of Platforms
Cristiano Antonelli and Pier Paolo Patrucco

16. Interconnection in the Internet: Peering, Interoperability and Content Delivery
David D. Clark, William H. Lehr and Steven Bauer

17. Internet Business Strategies
Johann J. Kranz and Arnold Picot

18. The Economics of Internet Search
Hal R. Varian

19. The Economics of Algorithmic Selection on the Internet
Michael Latzer, Katharina Hollnbuchner, Natascha Just and Florian Saurwein

20. Online Advertising Economics
Wenjuan Ma and Steven S. Wildman

21. Online News
Lucy Küng, Nic Newman and Robert G. Picard

22. The Economics of Online Video Entertainment
Ryland Sherman and David Waterman

23. Business Strategies and Revenue Models for Converged Video Services
Yu-Li Liu

24. The Economics of Virtual Worlds
Isaac Knowles and Edward Castronova

25. Economics of Big Data
Claudio Feijóo, José-Luis Gómez-Barroso and Shivom Aggarwal

26. The Evolution of the Internet: A Socioeconomic Account
D. Linda Garcia

27. From the Internet of Science to the Internet of Entertainment
Eli M. Noam