Glimmers and Signs of Innovative Health in the Commercial Internet

Journal of Telecommunications and High Technology Law, Vol. 8, No. 1, pp. 25-78, 2010

54 Pages Posted: 25 Feb 2010

See all articles by Shane M. Greenstein

Shane M. Greenstein

Harvard University - Technology & Operations Management Unit; National Bureau of Economic Research (NBER)

Date Written: Winter 2010

Abstract

What are the signs of healthy behavior in an innovative industry, such as the commercial Internet? This essay identifies patterns of healthy innovative conduct, that is, commercial behavior indicative of an innovative industry experiencing lower prices, new services, and gains in productivity. The essay illustrates how to observe such behavior in evolving markets, such as the Internet, highlighting four signs of innovative health: economic experiments; vigorous standards competition; entrepreneurial invention; and the absence of unilateral bargaining. The essay is written in the spirit of competition policy for Internet infrastructure that takes a “third way,” one that would rely more on negotiations and guidelines. If a third way emerges, administrators will require a conceptual framework and benchmark for quickly recognizing when a market event does or does not contribute to a healthy innovative outcome.

Keywords: Internet, Economic Experiments, Standards, Entrepreneurship

Suggested Citation

Greenstein, Shane M., Glimmers and Signs of Innovative Health in the Commercial Internet (Winter 2010). Journal of Telecommunications and High Technology Law, Vol. 8, No. 1, pp. 25-78, 2010. Available at SSRN: https://ssrn.com/abstract=1557410 or http://dx.doi.org/10.2139/ssrn.1557410

Shane M. Greenstein (Contact Author)

Harvard University - Technology & Operations Management Unit ( email )

Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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