Internet Economics: Models, Mechanisms And Management

Description

The internet represents a rapidly evolving set of technologies which is central to the development of a modern economy. Internet Economics: Models, Mechanisms and Management integrates knowledge about internet service design with economic modelling principles (pricing, cost and service models). Chapters highlight specific applications of the internet such as service provisioning, cloud computing, commerce, business security, network externalities, social media and more recent developments such as the Internet of Things (IoT), the industrial internet, data analytics and the use of big data to bring value to commercial ventures. Therefore, readers will have a conceptual and practical framework for understanding the economics of internet infrastructure and service delivery. This text is essential reading for students and professionals involved in business programs and courses that focus on the commercial aspects of internet services and industries that rely on internet-based technologies. CONTENTS......Page 6 FOREWORD......Page 10 PREFACE......Page 12 Organization......Page 13 ACKNOWLEDGEMENTS......Page 16 1.1. INTRODUCTION......Page 18 1.2. INDUSTRY STRUCTURE......Page 21 1.4. INTERNET PRICING......Page 22 1.6. PRICING CONGESTION......Page 24 1.7. COMPETITIVE BIDDING IN LARGE COMMUNICATION MARKETS......Page 26 1.8. INTERNET AND TELECOMMUNICATIONS REGULATION......Page 27 1.9. INTERNET COMMUNICATION TECHNOLOGIES: ATM AND B-ISDN......Page 28 1.10. BURSTINESS......Page 29 1.12. SIMPLE ECONOMICS OF INTERNET RESOURCE ALLOCATION AND PRICING......Page 30 1.13. BANDWIDTH-BUFFER TRADEOFF......Page 31 1.14. PRICING THE RESOURCES......Page 32 The Price Function......Page 33 1.15. PRICE ELASTICITIES......Page 34 1.16. RESOURCE ALLOCATION ALGORITHM......Page 35 REFERENCES......Page 36 2.1. INTRODUCTION......Page 38 2.2. THE INTERNET AS A REFLECTION OF THE ECONOMY......Page 41 Multiple Agent-Network Supplier Interaction......Page 42 2.3. INTERNET RESOURCES......Page 44 ATM and B-ISDN......Page 45 Traffic in B-ISDN......Page 46 Service Discipline......Page 47 Limiting Complexity......Page 48 2.5. MODELLING APPROACHES......Page 49 Optimal Allocation and QoS......Page 50 Scheduling and Pricing Mechanisms......Page 51 Network and Server Economies......Page 52 Allocation and Pricing Models......Page 54 Specific Problems of Economic Resource Allocation......Page 55 2.6. NETWORK ECONOMY......Page 56 Utility Parameters......Page 57 Packet Loss......Page 58 2.7. EQUILIBRIUM PRICE AND CONVERGENCE......Page 59 2.8. EXAMPLE OF TWO AGENTS AND ONE SUPPLIER......Page 62 CONCLUSION......Page 64 A. The Network Economy......Page 65 B. The Server Economy......Page 67 REFERENCES......Page 70 3.1. INTRODUCTION......Page 73 Network Routing......Page 75 Transaction Processing......Page 76 The Network Economy......Page 78 Price Equilibrium......Page 80 Proposition 3.2......Page 81 Agent Routing and Admission......Page 82 Admission Control......Page 83 Multiple Agent Network Supplier Interaction......Page 84 Proposition 3.4......Page 87 Transaction Routing......Page 88 APPENDIX: PROOF OF PARETO OPTIMAL ALLOCATIONS......Page 89 REFERENCES......Page 91 Internet Economics of Distributed Systems......Page 92 4.1. INTRODUCTION......Page 93 Pricing and Performance......Page 94 4.3. MECHANISM DESIGN APPROACHES......Page 95 Server Economy: Architecture for Interaction......Page 96 Performance Requirements......Page 97 4.4. ALLOCATION AND PRICING MODELS......Page 98 4.5. THE DATA MANAGEMENT ECONOMY......Page 99 Universal Access......Page 100 Quality-of-Service Characteristics......Page 101 4.7. DISCUSSION......Page 102 APPENDIX: SERVICE ARCHITECTURES FOR THE INTERNET ECONOMY......Page 104 Specialized Features in Centralized and Decentralized Models......Page 107 REFERENCES......Page 108 5.1. INTRODUCTION......Page 110 A Simple Mechanism Design......Page 112 Packet Loss......Page 113 Loss Probability Requirement: Utility Function......Page 114 Max and Average Delay Requirements......Page 115 Proposition 5.1......Page 116 Proposition 5.2......Page 117 Tail Probability Requirements: Utility Functions......Page 118 5.3. SERVICE ECONOMY: ARCHITECTURE FOR INTERACTION......Page 121 Performance Requirements......Page 122 CONCLUSION......Page 123 REFERENCES......Page 124 Network Platforms......Page 126 6.1. INTRODUCTION......Page 127 Assumptions and Implications......Page 130 Platform Utility......Page 131 Consumer Utility......Page 132 6.3. REVIEW OF PLATFORM ECONOMICS......Page 133 1. Amazon Web Services Platform......Page 136 3. Social Network Platform......Page 137 CONCLUSION......Page 138 REFERENCES......Page 139 7.1. INTRODUCTION......Page 142 Industrial Driving Forces in the IoT Context......Page 144 7.3. SPECIFIC TECHNOLOGIES AND USAGE......Page 146 7.4. BREADTH OF APPLICATION AREAS......Page 149 Healthcare......Page 150 7.5. SECURITY OF THINGS......Page 151 7.6. ECONOMIC BENEFITS......Page 152 7.7. FUTURE DIRECTIONS......Page 154 Smart Home Network......Page 156 REFERENCES......Page 158 8.1. INTRODUCTION......Page 161 8.2. BIG DATA DIMENSIONS......Page 166 Heterogeneity......Page 168 Quality......Page 169 Security and Privacy......Page 170 8.4. BIG DATA ANALYTICS AND SECURITY CHALLENGE......Page 171 8.5. BIG DATA ANALYTICS FOR INDUSTRY 4.0......Page 174 8.6. STATISTICAL AND COMPUTATIONAL NEEDS FOR BIG DATA......Page 177 CONCLUSION......Page 181 REFERENCES......Page 182 Internet, Innovation and Macroeconomics......Page 184 9.1. INTRODUCTION......Page 185 9.2. BASICS OF NETWORK ECONOMY......Page 186 9.3. ECONOMIC TRANSFORMATION......Page 187 9.4. ASSESSING THE TRANSFORMATION......Page 190 9.5. THE PRODUCTIVITY PARADOX......Page 193 9.6. GROWTH PROCESSES......Page 198 9.7. THE GLOBAL NETWORK ECONOMY......Page 200 Intangible Assets......Page 202 CONCLUSION......Page 203 REFERENCES......Page 204 ABBREVIATIONS......Page 207 GLOSSARY......Page 210 SUBJECT INDEX......Page 220