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19. This study is based on a sample of 1,009 computer users derived from a sample representative of 2,204 persons, age 18 or over, living in households with telephones and located in the 48 contiguous states.

20. Note that federal legislation passed in 1994 (which did not come into effect until 1997) allows people to restrict the release of personal information from state motor vehicle records.

21. See ‹http://www.sims.berkeley.edu/resources/infoecon/Security.html›.

22. See ‹http://www.melvyl.ucop.edu/›.

23. Branding is an effort to transform something perceived as generic into something with which people associate a brand name. A recent example is the ''Inside Intel" campaign, which built up significant brand awareness for CPUs, something that the average individual cared little about.

24. "Push" technologies send information to an intended consumer without that consumer having requested it, while "pull" technologies send information only in response to a specific request. Radio and television broadcasting and e-mail are examples of push technologies, because they both transmit information regardless of whether or not anyone specifically requested it; the World Wide Web is an example of pull technology since a page must be requested before it is sent. Note that push technologies can be used over the Internet as well; examples include the PointCast system, which delivers customized news to users' computer desktops.

25. The National Library of Medicine's MEDLINE system makes extensive bibliographic information covering the fields of medicine and health care available free of charge to the public through a Web site.

26. The Electronic Data Gathering, Analysis, and Retrieval system makes available to the public through a Web site much of the information companies are required to submit to the U.S. Securities and Exchange Commission.

27. Such a gap exists, for example, between various socioeconomic groups, between urban and rural areas, and between industrialized and developing countries.

28. Also see Markus (1987) on the theory of critical mass for interactive media.

29. See ‹http://raven.stern.nyu.edu/networks›.

30. Herodotus describes the use of auctions in Babylon as early as 500 BC. It is remarkable that a venerable economic institution like an auction has found a receptive audience on the Internet. The Internet Auction List (‹http://www.usaweb.com›) lists more than 50 sites that have regular online auctions, and more are being added every day. Computer equipment, air tickets, and Barbie dolls are being bought and sold daily via Internet auctions. Even advertising space is being sold via auction on AdBot (‹http://www.adbot.com›).

31. There have, however, been problems due to overbidding (the so-called "winner's curse" phenomenon, described in Box 2.8) and signaling. Signaling can occur in multiround auctions when the bid values are used to signal the intent of the bidder, in violation of the rule against there being any collaboration or collusion between auction participants. For example, a bid of $1,000,202 might indicate that a bidder has a particular interest in the market with telephone area code 202.

32. See Jussawalla et al. (1988); Machlup (1962); and Porat (1977).

33. See Bell (1973); Katz (1988); Machlup (1962); and Schement (1990).

34. See Dordick and Wang (1993); Ito (1981); and Kuo (1989).

35. See ‹http://www.w3.org/Privacy/Overview.html›.

36. See ‹http://www.w3.org›.



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