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Internet architecture and innovation in applications

In: Handbook on the Economics of the Internet

Author

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  • Barbara van Schewick

Abstract

The Internet’s original architecture – its technical inner structure – was based on three design principles: the layering principle and two versions of the end-to-end arguments. Over the past years, the Internet’s architecture has been changing in ways that deviate from the Internet’s original design principles. Some of these changes are driven by network providers’ desire for more profit; some changes are the reaction to technical challenges the Internet is facing. This chapter examines how deviations from the broad version of the end-to-end arguments affect the economic environment for innovation in Internet applications, content, and services and the overall amount and quality of application innovation that will occur. It uses a general approach to studying the architecture of complex systems named ‘architecture and economics’. Architecture is understood as one of several constraints on human behavior and economic theory (broadly defined) is used to explore the effects of these constraints.

Suggested Citation

  • Barbara van Schewick, 2016. "Internet architecture and innovation in applications," Chapters, in: Johannes M. Bauer & Michael Latzer (ed.), Handbook on the Economics of the Internet, chapter 14, pages 288-322, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:14700_14
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    Citations

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    Cited by:

    1. Antonelli, Cristiano, 2017. "Digital knowledge generation and the appropriability trade-off," Telecommunications Policy, Elsevier, vol. 41(10), pages 991-1002.
    2. Bauer, Johannes M. & Knieps, Günter, 2018. "Complementary innovation and network neutrality," Telecommunications Policy, Elsevier, vol. 42(2), pages 172-183.
    3. Briglauer, Wolfgang & Stocker, Volker & Stockhammer, Paul, 2019. "Ist Netzneutralität tatsächlich gut? Eine Neubewertung vor dem Hintergrund der Regulierung in den USA und in der EU sowie aktueller Forschungsergebnisse," Policy Notes 38, EcoAustria – Institute for Economic Research.

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