Law Commons^™

The Internet, Regulation And The Market For Loyalties: An Economic Analysis Of Transborder Information Flow, Paul D. Callister

Faculty Works

As the Internet has gained prevalence, attention has turned to its regulation. Indeed, regulation proves to be a unique and complex problem, given the Internet's lack of traditional borders and boundaries. Highlighting possible avenues of regulation, the author discusses neo-classical economic theory, specifically Monroe E. Price's market for loyalties theory. Although originally applied to the regulation of broadcasting, the author contends that the market for loyalties theory can also be applied to the Internet. Building on Professor Price's pioneering analysis, the article extends the theory to examine market elasticity's effect on the loss of monopoly control over information flow (as …