Economic incentives for security investment in elements of the Internet is of increasing concern. This paper contains an exploration of the incentives for Internet service providers (ISP)s to invest in security. The analysis focuses on the spillover effects of ISP security investments to other...

In September 2009, FCC Chairman Julius Genachowski proposed two new principles for Internet policy, nondiscrimination and transparency. Nondiscrimination is the key element of the policy known as “network neutrality” and declares that the telephone and cable companies (Internet Service...

Proposals for network neutrality are usually justified at least in part based on positive spillovers and externalities related to an “open” Internet. Almost everyone would agree that the Internet generates a great many positive benefits throughout the economy, but there is much less...