Abstract

http://ssrn.com/abstract=2032221
 


 



Modularity Theory and Internet Policy


Christopher S. Yoo


University of Pennsylvania Law School; University of Pennsylvania - Annenberg School for Communication; University of Pennsylvania - School of Engineering and Applied Science

May 2013

U of Penn, Inst for Law & Econ Research Paper No. 13-15
2012 TRPC

Abstract:     
Modularity is often cited as one of the foundations for the Internet’s success. Unfortunately, academic discussions about modularity appearing in the literature on Internet policy are undertheorized. The persistence of nonmodular architectures for some technologies underscores the need for some theoretical basis for determining when modularity is the preferred approach. Even when modularity is desirable, theory must provide some basis for making key design decisions, such as the number of modules, the location of the interfaces between the modules, and the information included in those interfaces.

The literature on innovation indicates that modules should be determined by the nature of task interdependencies and the variety inherent in the external environment. Moreover, modularity designs interfaces to ensure that modules operate independently, with all information about processes that adjacent modules should not take into account being hidden within the module.

These insights in turn offer a number of important implications. They mark a return to a more technological vision of vertical integration that deviates from the transaction-cost oriented vision that now dominates the literature. They also reveal how modularity necessarily limits the functionality of any particular architecture. In addition, although the independence fostered by modularity remains one of its primary virtues, it can also create coordination problems in which actors operating within each module optimize based on local conditions in ways that can lead to suboptimal outcomes for the system as a whole. Lastly, like any design hierarchy, modular systems can resist technological change. These insights shed new light on unbundling of telecommunications networks, network neutrality, calls for open APIs, and clean-slate redesign proposals.

Number of Pages in PDF File: 61

Keywords: Law and Economics, Law and Regulatory Systems, Law, Technology and Communications, Regulated Industries, Science and Technology, Communications Law, Computer Law, Law and Technology

JEL Classification: K0, K23, L86, O14, O33

working papers series


Download This Paper

Date posted: April 1, 2012 ; Last revised: May 9, 2013

Suggested Citation

Yoo, Christopher S., Modularity Theory and Internet Policy (May 2013). U of Penn, Inst for Law & Econ Research Paper No. 13-15; 2012 TRPC. Available at SSRN: http://ssrn.com/abstract=2032221 or http://dx.doi.org/10.2139/ssrn.2032221

Contact Information

Christopher S. Yoo (Contact Author)
University of Pennsylvania Law School ( email )
3501 Sansom St.
Philadelphia, PA 19104-6204
United States
(215) 746-8772 (Phone)
HOME PAGE: http://www.law.upenn.edu/faculty/csyoo/
University of Pennsylvania - Annenberg School for Communication ( email )
3620 Walnut St.
Philadelphia, PA 19104-6220
United States
(215) 746-8772 (Phone)
University of Pennsylvania - School of Engineering and Applied Science ( email )
3330 Walnut St.
Philadelphia, PA 19104-6309
United States
(215) 746-8772 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 1,514
Downloads: 99
Download Rank: 158,741
Paper comments
No comments have been made on this paper

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.297 seconds