Apropos recent dialog on the Chapter-delegates list about Net Neutrality vs. Open-Internetworking, below - from Farber's IP list, and prompted by recent revelations that an ISP has been hijacking its client's Google queries - is a comment re-inforcing the notion that, while NN is debatably valid or achievable, transparency and disclosure are more appropriate avenues for immediate concern - and possible FTC clarification/regulation.<br>
<br>The concept of "information asymmetry" is a solid addition to the conversation.<br><br>j<br><br><div class="gmail_quote"><div bgcolor="#FFFFFF"><div><br></div><div><br>Begin forwarded message:<br><br></div>
<blockquote type="cite">
<div><b>From:</b> Gerry Faulhaber <<a href="mailto:gerry-faulhaber@mchsi.com" target="_blank">gerry-faulhaber@mchsi.com</a>><br><b>Date:</b> April 12, 2010 10:37:08 AM EDT<br><b>To:</b> <a href="mailto:dave@farber.net" target="_blank"></a><a href="mailto:dave@farber.net" target="_blank">dave@farber.net</a><br>
<b>Subject:</b> <b>Enabling Markets (re: "Hijacking")</b><br><br></div></blockquote><div></div><blockquote type="cite"><div>
<div><font size="2" face="Arial">Dave [for IP, if you wish]--</font></div>
<div><font size="2" face="Arial"></font> </div>
<div><font size="2" face="Arial">Should a firm engage in deception of some sort
(whether this alleged redirection/"hijacking" rises to the level of fraud
is another issue), they are taking advantage of a well-known market failure:
information asymmetry, in which the producer knows quite a bit more about its
product/service than the customer does, and may use that additional knowledge
for nefarious purposes. Consumer protection laws, lemon laws, the Federal
Trade Commission, Health Dept restaurant inspectors, FDA regulations, all
are government interventions designed to solve or alleviate this information
asymmetry, which only in special circumstances will the market itself
correct. There are often other solutions to information asymmetry problems
(certifying private agencies, such as Good Housekeeping, JD Powers, for
example), but sometimes government intervention to ensure transparency and
disclosure is required to assure the proper workings of the competitive
market.</font></div>
<div><font size="2" face="Arial"></font> </div>
<div><font size="2" face="Arial">Dave Farber and I have come out very forcefully in
our two recent papers in favor of transparency and disclosure not only in the
broadband ISP market but in all Internet markets (yes, including application and
content providers), if necessary by gov't regulation. We are believers in
the power of markets, but fully understand that intervention may be necessary in
the event of a market failure such as information asymmetry.</font></div>
<div><font size="2" face="Arial"></font> </div>
<div><font size="2" face="Arial">FYI, the two papers are "Innovation in the Wireless
Ecosystem", <a title="http://ijoc.org/ojs/index.php/ijoc/article/view/670/388
CTRL + Click to follow link" href="http://ijoc.org/ojs/index.php/ijoc/article/view/670/388" target="_blank"></a><a href="http://ijoc.org/ojs/index.php/ijoc/article/view/670/388" target="_blank">http://ijoc.org/ojs/index.php/ijoc/article/view/670/388</a> and
"The Open Internet" <a href="http://ijoc.org/ojs/index.php/ijoc/article/view/727/411" target="_blank"></a><a href="http://ijoc.org/ojs/index.php/ijoc/article/view/727/411" target="_blank">http://ijoc.org/ojs/index.php/ijoc/article/view/727/411</a>,
both published in the International Journal of Communications, and submitted as
Comments to the FCC in related proceedings.</font></div>
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<div><br><br></div></div></div></blockquote></div></div><br clear="all"><br>-- <br>---------------------------------------------------------------<br>Joly MacFie 917 442 8665 Skype:punkcast<br>WWWhatsup NYC - <a href="http://wwwhatsup.com">http://wwwhatsup.com</a><br>
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