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Auerbach Weighs in for gTLD Lotteries
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Slots versus Strings
Karl asks an important question about slots versus strings. The problem is that some strings will be desired by more than one bidder. If we are talking about a commercial gTLD (as opposed to a gTLD for nonprofit use), then the string ought to go to the bidder who will put it to the highest and best use; an auction is likely the best mechanism for assuring this.
Problem with Post-Auction/Post-Lottery Process
Karl suggests a post-auction and/or post-lottery process, but this may not be practicable. Some enterprises will have business plans that demand a particular string. If they do not know whether their bid will win the string, they will have a difficult time developing a rational bidding strategy.
Separate the Backend from Management
One possible solution to this range of issues to separate the backend (operation of the registry) from the the frontend (management of the gTLD). Thus, successful bidders for strings would either provide their own backend or contract with a backend firm with the necessary technical capacity.
Further Discussion
These issues obviously require further discussion. The strings versus slots issue is an important one, and should be fully aired.Lawrence Solum
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