Digital technology is the representation of information in bits. This technology has reduced the cost of storage, computation, and transmission of data. Research on digital economics examines whether and how digital technology changes economic activity. In this review, we emphasize the reduction...

Intro -- Contents -- Acknowledgments -- Introduction / Avi Goldfarb, Shane M. Greenstein, and Catherine E. Tucker -- I - Internet Supply and Demand -- Chapter 1 - Modularity and the Evolution ofthe Internet / Timothy Simcoe -- Comment / Timothy F. Bresnahan -- Chapter 2 - What Are We Not Doing...

This chapter summarizes the fundamental questions underlying the economics of privacy. It highlights the tension between the multifaceted concept of privacy as commonly used in policy debates and its conceptualization as part of a utility function. The chapter then sets out new challenges for...