Nicholas Economides:
Economics of Networks

Esther Dyson's "Intellectual Property on the Internet"

Society of CPCU

Start Page

This document consists of this page and four others:

• Introduction
• Marketing
• Sale Closure
• Customer Service

 Prologue

Some think that the creative use of Internet technology will produce dramatic change in the way many goods and services are sold and delivered. Some are already experimenting with the tools of the Net, while others wait to see how the pioneers fare and how legal standards and regulation are applied.

Still in its infancy, and growing rapidly, the Net presents fascinating legal issues. Some of these issues can be addressed with fundamental principles, some may require wholly new concepts and international agreements.

This document attempts to address some of the many issues of marketing and transacting regulated businesses on the Net. The author focuses on insurance, the industry in which he is employed, but many of the issues and references apply to other services.

In considering the rules that should apply to the Net, it is useful to consider several developing economic theories. One is Nicholas Economides' work regarding the Economics of Networks, typified by the Law of Increasing Returns. Another is Esther Dyson's theory in "Intellectual Property on the Internet" that the low cost of publishing on the Net will lead to a valuation of intellectual property that is much, much lower than it finds today. While both theories are beyond the scope of this document, policy makers need to consider them. Good places to start are identified at the left.

This document was written as preparation for the author's participation in a continuing educational program sponsored by The Society of Chartered Property Casualty Underwriters. The views expressed are solely those of the author.

Net Nuggets
(links and informal notes about Life, Law and the Net)
Main Index Page is at: www.oocities.org/wallstreet/5175

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