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We consider market rules for transferring IP addresses, numeric identifiers required by all computers connected to the Internet. Transfers usefully move resources from lowest to highest-valuation networks, but transfers tend to cause socially costly growth in the Internet's routing table. We propose a market rule that avoids excessive trading and comes close to achieving social efficiency. We argue that this rule is feasible despite the limited powers of central authorities. We also offer a framework for reasoning about future prices of IP addresses, then explore the role of rentals in sharing information about the value of IP address and assuring allocative efficiency.
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Edition | Availability |
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Pricing and efficiency in the market for IP addresses
2014, Harvard Business School
in English
- Revised edition
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"September 2011. (Revised November 2012, June 2013, April 2014.)"--Publisher's Web site.
Includes bibliographical references (pages 36-38).
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