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Showing posts from March, 2015

Internet content and consumer digital surplus

It is increasingly being argued that the Internet provides “digital surplus” to consumers and that this surplus is a means of understanding the value of the Internet to users and society. Measuring the surplus presents a host of challenges, however.

First, the Internet does not produce content. Private enterprises, public entities, and individuals create content with different motives and compensation demands. These are offered under varying business strategies that determine how and how often the content is available on the internet.
Secondly, Internet gateways—ISPs, search engines, and aggregators—have a significant influence on consumers’ content choices. Consumers use relatively few gateway services, but they access content from multiple providers. The nature and sources of that content are highly influenced by the gateways, their preferred content providers, and the algorithms they employ in filtering content.
Determining whether consumers obtain value for money in terms of price, s…