InternetEconomics.pptVIP

Internet Economics Shi-Chung Chang Yi-Nung Yang Lecture #1: Outline Today Internet Overview Internet Background and Organization ISP and Services Future Trend Economic Problems of Internet network infrastructure congestion, efficient pricing content intellectual property, pricing information goods, decency, encryption and transaction security, Course Overview Why Offering at EECS What Are Special? Zero Marginal Cost Unknown User Demands Negative and Positive Externalities == Tragedy of Commons ? Very Fast System Evolution : Users, Services and Technologies Economic FAQs about Internet Background What is Internet? Where did it come from? What do people do on the Internet? How big is the Internet? Internet Structure What Do People Do on Internet? Traffic (by Bytes, Sept. 1994) 32% file transfer 13% information discovery (gopher/WWW) 11% Usenet news 10% overhead (IP, DNS) 6% email 5% remote login How Big Is the Internet?(to be updated) Size: transmission capacity traffic U. S. : 60 - 70% of Internet users and host computers Study long distance instead of local traffic Distinct Growth Rates Interstate voice traffic 8% (in minute of use) Capacity/traffic of private links 15-20% Capacity/traffic of public Internet 100% Factor of distance decreasing in tariffs/costs but increasing with link capacity Local traffic stays significant (social behavior) Data overtaking voice in 2002 predicted Economic FAQs about Internet Organization Who runs the Internet? What is the structure of the Internet? What are the backbone networks (in Taiwan) ? What was the NSFNET ( are TANET, HINET SEEDNET) ? How much did NSFNET (do these nets) cost? Who provides access outside of Taiwan? Internet Governance Standards Internet Engineering Task Force (IETF) We reject kings, presidents, and voting. We believe in rough consensus and running code.” - IETF Credo Architecture 99% distributed (Gillett and Kapor) Centralized IP address Domain names How Much Did NSFNET Cost?