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1、THEECONOMICSANDREGULATIONOFTHEINTERNETMartinCaveDepartmentofEconomicsBrunelUniversityRobinMasonDepartmentofEconomicsUniversityofSouthamptonandCEPR10April2001ApaperpreparedfortheOXREPissueoneconomicsandtheInternet.Theauthors'e?mailaddressesare:martin.cave@brunel.ac.ukandrobin
2、.mason@soton.ac.uk.11.IntroductionTheInternetisahottopic.Thefortunesofdotcomfirmscommandheadlinespaceinnewspapersandtelevisionreports.Governmentshavewell?publicizedpoliciesaboutextendingInternetaccesstocreate"knowledge?basedeconomies".Grandparentskeepintouchwiththeirfamilies
3、bye?mail.YetlittleisknownabouttheInternet.Mostpeoplearehard?pushedtosayexactlywhattheInternetis.RegulatorsandgovernmentsknowthattheInternetisimportant;buttheyarenotquitesurewhetheritrequirestheirattentionornot.Economistshave,onthewhole,notdevotedtoomuchefforttothearea.Thepur
4、poseofthisarticleistoinformthelayperson,regulatorandeconomistabouttheInternet.Sections2and3provideinformationaboutthedevelopmentoftheInternetanditsoperationandorganization.Section4describesthemajorregulationandcompetitionissues.Section5discussestheeconomicanalysisthatisneede
5、dtoinformthepolicydebate.Thearticlereachesseveralconclusions;theyaresummarizedinsection6.Animportantoverallmessageisthatmuchmoreworkisneededinthisareatoansweralloftheoutstandingquestions.TheInternetprovidesafertileresearchareafortheoreticalandappliedresearchers.2.Definitiona
6、ndBackgroundoftheInternetThemostfrequentlyaskedquestionsabouttheInternetis:whatistheInternet?Itissurprisinglyhardtogetapreciseanswer.Theusualdefinition?'aglobalnetworkofnetworks'?issuggestivebuthardlyexact.AmoredetailedansweristhattheInternetisaworldwidenetworkofcomputerstha
7、tusecertainprotocolsfordatatransmissionandexchange.Thedefinitivestatementwasgivenon24October1995,whentheFederalNetworkingCouncil(FNC)unanimouslypassedaresolutiondefiningtheterm.TheFNCdeclaredthattheInternetrefersto"theglobalinformationsystemthat:(i)islogicallylinkedtogetherb
8、yagloballyuniqueaddressspacebasedontheInternetProtocol(IP)oritssubsequentex
