One type of important transactions costs are the costs incurred in enforcing property rights. Property rights enforcement may be very difficult on the Internet. The nature of information as a good is central to any analysis of the economic and social importance of the Internet. The free availability of high quality information is a core assumption in the list of conditions which make markets in general work. It can be argued that private markets display bias against long term investment.
Markets have difficulty in dealing with rapid technological change.
Other countries use industrial policy to smooth technological transition. Consider the case of the European Airbus. If price is going to be used as a rationing mechanism a carefully thought out pricing policy is needed. At this point the economic data needed to make sensible statements about what is being spent on the existing structure, by whom, and from what source, do not exist. The study of a systematically collected sample of material on expenditures and subsidies, direct and indirect, would provide very useful information.