ABSTRACT
This chapter begins with a review of the basic economics of information networks and other distribution systems used for media products. Networks can be physical or nonphysical, permanent or temporary, ranging from the global telecommunications net to a group of friends chatting over drinks after work. They can incorporate oneway distribution of information goods, enable interactions, or permit a wide range of communication types (as evidenced by the Internet). The products distributed may be physical or not, and the information at its heart can often be embodied and distributed in a variety of forms. Although a wide range of distribution and transportation systems can be seen as networks, for our purposes we focus on information networks, systems that allow the sharing or distribution of information goods and services. We could also use the generic term “media,” although this more commonly refers to a set of mass communication systems.
