E-Commerce Regulation and the Internet:

e-Commerce

Regulation and the Internet: Public Choice Insights for Business Organizations

In the article Regulation and the Internet: Public choice insights for business organizations (Jarvenpaa, Tiller, Simons, 2003) the authors define the concept of public choice as it relates to open source software. Using this framework for explaining how regulation is often used for stifling and reducing competition by creating barriers to entry by laws being created and enforced that protect markets rather than opening them up, the authors argue that the Internet is rewriting the rules of competitive dynamics in software markets (Jarvenpaa, Tiller, Simons, 2003). The authors also contend that the Internet and open source software combined have led to a more egalitarian-based approach business models based on the Web, contrary to what the original Internet architects intended (Jarvenpaa, Tiller, Simons, 2003).

Analysis

Open choice theory has been relied on for decades and used successfully for defining regulation policies hat are utilitarian in scope (Meijer, Homburg, 2009). The analysis provided in the article presents a balanced analysis of the history of open choice theory and provides insights into how the Internet could feasibly be balkanized very quickly, leading to a highly stratified and segmented series of applications, content sources, and programs. This is the cautionary tone that pervades the article that underscores the need for better collective action-based initiatives to support Internet neutrality, support for regulatory sovereignty, and for development of regulatory design as well. Public choice specifically states that industries will most align to and protect the interests of those most closest to them and those interests groups with the greatest possible influence as well (Jarvenpaa, Tiller, Simons, 2003). The balance of egalitarian and utilitarian-based ethics vs. The balkanization of groups, resources, and standards is the focus of the public choice theory (Meijer, Homburg, 2009).