[10-40] Timothy F. Bresnahan and Garth Saloner, "Large Firms' Demand for Computer
Products and Services: Competing Market Models, Inertia, and Enabling Strategic
Change," October 1994 (Research Paper No. 1318 in the Stanford Graduate School of
Business Jackson Library).

[10-41] National Research Council, _The_Internet's_Coming_of_Age_ (Washington, D.C.: Na-
tional Academy Press, 2000), Chapter 3, 24.

[10-42] Tim Berners-Lee, _Weaving_the_Web:_The_Original_Design_and_Ultimate_Destiny_of_
_the_World_Wide_Web_by_Its_Inventor_ (San Francisco: HarperSanFrancisco, 1999), 130.

[10-43] See Daniel L. Rubinfeld and Hal J. Singer, "Open Access to Broadband Networks:
A Case Study of the AOL/Time Warner Merger," _Berkeley_Technology_Law_Journal_ 16
(2001): 631, 672 ("Our analysis has shown that a policy of... conduit discrimination
may be profitable post acquisition [and] that content discrimination is likely to be prof-
itable post-acquisition.").

[10-44] See Seth Schiesel, "Cable Giants Block Rival Ads in Battle for Internet Customers,"
_New_York_Times,_ June 8, 2001, A1.

Denise Caruso raised concerns about the free speech aspects of this change eighteen
months earlier. As she argued, there is an increasing possibility that most of the Internet's
content will be controlled by a few -- or perhaps even one -- large corporations, raising
some very troubling issues. "The reasons for urgency are twofold. First is the issue of how
to open privately owned broadband Internet access to all comers. In addition, the free-
speech issue arises when any single entity, of any size, controls both a transmission me-
dium and the information that flows over it. Open access is a particular concern...
Powerful corporations like AT&T and the proposed AOL Time Warner would have the
power to balkanize the broadband Internet for their own purposes, with no legal reason
to open their networks to competitors." "Convergence Raises Concerns About Access,"
_New_York_Times,_ January 31, 2000, available at http://www.nytimes.com/library/tech/00/
01/biztech/articles/31digi.html.

[10-45] See Federal Trade Commission, "FTC Approves AOL/Time Warner Merger with
Conditions," December 14, 2000, http://www.ftc.gov/opa/2000/12/aol.htm; Federal
Trade Commission, Docket No. C-3989. See also John R. Wilke, "AOL and Time-
Warner Pledge Cable Access to Ease FTC Fears," _Wall_Street_Journal,_ December 14,
2000.

[10-46] Or alternatively, a tragedy of an anticommons. The opportunity for any number of
players to interfere with open access to the network could be viewed as an anticommons.
See Michael A. Heller, "The Tragedy of the Anticommons," _Harvard_Law_Review_ 111
(1998): 621; James M. Buchanan and Yong J. Yoon, "Symmetric Tragedies: Commons
and Anticommons," _Journal_of_Law_&_Economics_ 43 (2000): 1.

[10-47] This is not quite the tragedy that Hardin is describing. There is no common physi-
cal resource that is being overused. But there is a common virtual resource -- the oppor-
tunity to innovate freely on the network -- that is being misused by restricting the scope
of that innovation with respect to one part of the network. That produces an externality,
even if it doesn't "overuse" a resource.

[10-48] See Brief of Amici Curiae, Reed Elsevier Inc. et al., 7-9, _eBay_Inc._ v. _Bidder's_Edge_
_Inc.,_ 100 F. Supp. 2d 1058 (N.D. Cal. 2000) (No. C-99-21200RMW).

[10-49] See Chip Bayers, "The Bot.com Future," _Wired_ (March 2000): 210.

[10-50] The total number of addresses available under Ipv6 is 1038. That is a huge number:
"If the address space of IPv4 is compared to 1 millimeter, the address space of IPv6
would be 80 times the diameter of the galactic system." See http://www.wide.ad.jp/wg/
iPv6/index.html.

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