What are some of the economic problems for commerce on the Internet?
Imagine walking into a bookstore, looking up a book, finding it on the shelves, browsing through its neighbors on the shelve, and finally paying for it with a credit card at the counter. None of this required an explicit set of pre-negotiated contracts or complicated protocols. The value of the Internet will be much greater if this kind of “spontaneous commerce” becomes commonplace. In order for this to become a reality, it will be necessary to design Internet search and discovery tools, browsing tools, and payment mechanisms. Research on all these topics is underway. However, the Internet environment also offers new challenges. One big one is security: what protocols can ensure that your credit card number or, for that matter, the details of your purchase, remain private and secure?
