Pricing and efficiency in the market for IP addresses
By: Benjamin Edelman, Michael Schwarz
Contributors: Schwarz, Michael, 1970- author; Harvard Business School
Edition: Revised edition
Series: Working paper / Harvard Business School -- 12-020; Working paper (Harvard Business School) -- 12-020.
Publisher: Harvard Business School
Published: 2014
Place of publication: Boston]
Language: eng
Number of pages: 38
Description: 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.
Notes: "September 2011. (Revised November 2012, June 2013, April 2014.)"--Publisher's Web site.

Includes bibliographical references (pages 36-38).