Issue 12, Fall 1996

William A. McEachern, Editor

Internet Courses

Using the Internet to supplement course materials is one approach. One could also offer a course covering economics on the Internet as is done at Chico State, where Frederica Shockley focuses on the tools necessary to gather economic information through the Internet. Students learn about search tools, Telnet, Archie, FTP, html, and the like. Course materials include an on-line text and glossary as well as a hard-copy text. You can check out this noncredit course at http://www.csuchico.edu/ econ/personel/syl/SYL_fs005f96.html.

Another approach, one that relies more on economics, is to offer a course on the economic of the Internet, such as the course entitled Info Net Economics offered by Jeffrey Mackie-Mason at the University of Michigan. This course examines information networks, technologies, vertical integration, government regulation, congestion, intellectual property, electronic commerce, digital currency, electronic publishing, and other topics with strong economic content. The syllabus contains abundant Internet links.

A variety of interesting economic questions have emerged with the growing popularity of the Internet. One is obviously the congestion arising from the common pool problem of the network. Another involves the allocation of domain names (addresses, or URL). Because allocation is on a first-come first-serve basis, some enterprising individuals early on laid claim to famous corporate or political names. Unlike trademarks, domain names do not have to be used to be retained, so anyone can stockpile addresses. This activity raises questions about property rights and the efficient allocation of resources. More generally, food for thought for such a course would include the 1995 federal report, Intellectual Property Rights and the National Information Infrastructure.

Another interesting economic question is how some companies make money selling information on the Internet. Charging an access fee is an obvious approach, but some information providers couple access with the use of a related product or activity. For example, the Bloomberg Personal page requires an access code that viewers must learn anew each week by watching the Bloomberg Personal TV show. Some businesses provide a product free to students so they will buy that product later on the job. For example, EXPO is a software package offering more than 700 data analysis functions using financial and economic data. According the promotional material, this package sells for $4,000 and is used by professional analysts, traders, and economists around the world. A version is available free to registered students.

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