Anyone's Game: A Market- Structure Based Approach to Economic and Regulatory Implications of an Internet of Things

Abstract

Research suggests that the future of the Internet will be defined by ubiquitous computing: an environment in which smart objects, or "Things," are imbued with identification data and micro processing power. Currently, the information produced by machines and objects is the fastest growing category of data production. In response to this explosion of information in the global networked economy, the Internet of Things (IoT) automates value-extraction from captured data. This paper proceeds by first defining and explaining the basic context and operation of the Internet of Things (IoT). Then, addressing a gap in the extant literature, a market structure-based approach is submitted as a macro-level framework for the IoT. Utilizing the end-user of IoT services and applications as a defining characteristic for market segmentation, an argument is made for the division of the IoT by scale of service into into four markets: individual-level, firm-level, city government-level and national-government-level. Using these markets as units of analysis, this paper attempts a categorical assessment and jurisdictional bounding of significant economic and policy implications of the IoT.

Keywords: Internet of Things, structure conduct performance paradigm, ubiquitous computing, regulatory policy, industrial organization