Commercialization of the Internet: The Interaction of Public Policy and Private Actions or Why Introducing the Market Worked so Well?

Why did the commercialization of the Internet proceed so quickly and with such success? The performance of the commerical Internet in the mid to late 90s is particularly puzzling in light of the large number of examples of government technology that did not commercialize easily. This paper examines the Internet Service Provider industry as a window on why the commercial markets sometimes do or do not help a new technology diffuse. The paper draws lessons for other technologies commercialized by government.