ICANNWatch
 
  Inside ICANNWatch  
Submit Story
Home
Lost Password
Preferences
Site Messages
Top 10 Lists
Latest Comments
Search by topic

Our Mission
ICANN for Beginners
About Us
How To Use This Site
ICANNWatch FAQ
Slash Tech Info
Link to Us
Write to Us

  Useful ICANN sites  
  • ICANN itself
  • Bret Fausett's ICANN Blog
  • Internet Governance Project
  • UN Working Group on Internet Governance
  • Karl Auerbach web site
  • Müller-Maguhn home
  • UDRPinfo.com;
  • UDRPlaw.net;
  • CircleID;
  • LatinoamerICANN Project
  • ICB Tollfree News

  •   At Large Membership and Civil Society Participation in ICANN  
  • icannatlarge.com;
  • Noncommercial Users Constituency of ICANN
  • NAIS Project
  • ICANN At Large Study Committee Final Report
  • ICANN (non)Members page
  • ICANN Membership Election site

  • ICANN-Related Reading
    Browse ICANNWatch by Subject

    Ted Byfied
    - ICANN: Defending Our Precious Bodily Fluids
    - Ushering in Banality
    - ICANN! No U CANN't!
    - roving_reporter
    - DNS: A Short History and a Short Future

    David Farber
    - Overcoming ICANN (PFIR statement)

    A. Michael Froomkin
    - When We Say US™, We Mean It!
    - ICANN 2.0: Meet The New Boss
    - Habermas@ discourse.net: Toward a Critical Theory of Cyberspace
    - ICANN and Anti-Trust (with Mark Lemley)
    - Wrong Turn in Cyberspace: Using ICANN to Route Around the APA & the Constitution (html)
    - Form and Substance in Cyberspace
    - ICANN's "Uniform Dispute Resolution Policy"-- Causes and (Partial) Cures

    Milton Mueller
    - Ruling the Root
    - Success by Default: A New Profile of Domain Name Trademark Disputes under ICANN's UDRP
    - Dancing the Quango: ICANN as International Regulatory Regime
    - Goverments and Country Names: ICANN's Transformation into an Intergovernmental Regime
    - Competing DNS Roots: Creative Destruction or Just Plain Destruction?
    - Rough Justice: A Statistical Assessment of the UDRP
    - ICANN and Internet Governance

    David Post
    - Governing Cyberspace, or Where is James Madison When We Need Him?
    - The 'Unsettled Paradox': The Internet, the State, and the Consent of the Governed

    Jonathan Weinberg
    - Sitefinder and Internet Governance
    - ICANN, Internet Stability, and New Top Level Domains
    - Geeks and Greeks
    - ICANN and the Problem of Legitimacy

    Highlights of the ICANNWatch Archive
    (June 1999 - March 2001)


     
    This discussion has been archived. No new comments can be posted.
    Auerbach Weighs in for gTLD Lotteries | Log in/Create an Account | Top | 49 comments | Search Discussion
    Click this button to post a comment to this story
    The options below will change how the comments display
    Threshold:
    Check box to change your default comment view
    The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
    Apologies to Fnord & More on Pyramids
    by lsolum on Thursday April 10 2003, @06:10PM (#11489)
    User #3416 Info | http://lsolum.blogspot.com/
    Fnord's points are all well taken. Of course, many SLDs are used for non-web purposes. Of course, there are defensive registrations. By "inventory" I meant to refer to speculative inventories--and I am happy to adopt Fnord's more precise usage of this term. Further, I apologize for confusing Fnord with the Anonymous poster whose messages I had been responding to up until this point on this issue.

    On the question whether there was a pyramid scheme, it still seems clear that at best there is a loose analogy between the economics of domain name sales and the economics of a pyramid scheme. Here is what Fnord wrote:
      At every step down this pyramid the price goes up, not normally because there is any value added but simply because the seller has control of what has at least the perception of being a scarce resource. In addition at most levels in this chain there are claims made by the sellers about the supposed scarcity, and supposed value, that are at odds with reality (compare this, for example, with pyramid schemes selling snake oil purported to be the cure for cancer or other illnesses). False claims, false scarcity, upping the price at each level without actually adding value, this all smells, or rather stinks, of a pyramid scheme for all practical purposes.

    I want to concede that there are undoubtedly cases of misrepresentation, but this is economically a quite different phenomenon from a pyramid scheme--where each new recruit is told that they must bring in some number N of new recruits in order to recieve the promised payoffs. No one on this thread has given any argument that this feature (exponential growth at each layer of the pyramid) has ever been characteristic of the market in domain names. Perhaps, somewhere, someone was running a true pyramid scheme involving domain names, but none of the phenomena identified by Fnord or the anonymous poster correspond to the characteristics that are criterial for a true pyramid scheme.

    The phenomena that Fnord identifies are charcteristic of a quite different economic phenomenon--a speculative bubble. Speculative bubbles involve inflated claims of value, a lack of correspondence between market price and underlying economic realities, and resale of the same commodity good for higher and higer prices. If Fnord's point is that domain name sales have involved a speculative bubble and that speculative bubbles like pyramid schemes are undesirable, I absolutely agree.Lawrence Solum
    [ Reply to This | Parent ]
    Apologies to Fnord & More on Pyramids by lsolum
    Re:Apologies to Fnord & More on Pyramids
    by fnord (groy2kNO@SPAMyahoo.com) on Friday April 11 2003, @11:41AM (#11494)
    User #2810 Info
    No need to apologize, and I think we are generally in agreement. I never stated that ICANN is running a pyramid scheme, only that it many ways it looks, feels, and smells like one, which I think is of itself undesirable. I do maintain that the speculative bubble has largely burst. I suspect that the registering of domain names in the hopes of resale has largely disappeared as there is now a relatively long history of lack of success in this endeavor amongst most who engaged in it. I have also written previously here and elsewhere regarding some of the supposed success stories (such as beauty.cc allegedly selling for $1million) which turned out to be scams. Indeed many of the most ballyhoed success stories turned out to be at least dishonest and at worst scams.

    What we now have is speculators going to WLS where it makes more sense to pay more than a registration fee for a pre-owned 1a2b3zzz.com if it has considerable traffic than to pay $7million for business.com (another scam) if it doesn't generate traffic. Thus does ICANN, some registries, and some registrars (and perhaps some resellers) keep its ship afloat. This new speculator bubble will also probably pop in good time. -g

    [ Reply to This | Parent ]
  • 1 reply beneath your current threshold.

  • Search ICANNWatch.org:


    Privacy Policy: We will not knowingly give out your personal data -- other than identifying your postings in the way you direct by setting your configuration options -- without a court order. All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest © 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008 by ICANNWatch.Org. This web site was made with Slashcode, a web portal system written in perl. Slashcode is Free Software released under the GNU/GPL license.
    You can syndicate our headlines in .rdf, .rss, or .xml. Domain registration services donated by DomainRegistry.com