More garbage press releases released as "Independent Economic Reports"
- To: competition-pricing-final@xxxxxxxxx
- Subject: More garbage press releases released as "Independent Economic Reports"
- From: George Kirikos <gkirikos@xxxxxxxxx>
- Date: Sat, 6 Jun 2009 12:21:51 -0700 (PDT)
ICANN posted two more garbage press releases masquerading as independent
economic reports about new gTLDs, see:
Of course, to no one's surprise, the reports simply justified their original
papers. They ignored and dismissed the significant concerns raised by the
community, once again. ICANN never even posted a summary or analysis of the
original comments that were submitted:
The author completely ignored the issue of tiered pricing, and did not
investigate the magnitude of switching costs (e.g. for a company to switch from
Cars.com or Hotels.com to NewCo.cars or NewBiz.hotels if the registry operator
for .com was allowed to charge different prices for each domain name, which
would be the monopolist's optimal strategy if price caps were eliminated).
Indeed, Dr. Carlton's entire report is based on the false assumption that all
consumers would be charged identical prices. Paragraph 69 states:
"Ex ante competition serves to protect both uninformed consumers, which face
greater risk of opportunistic price increases, as well as better informed
consumers BECAUSE BOTH SETS OF CONSUMERS PAY THE SAME PRICES." (emphasis added)
This of course would not be the case. VeriSign would charge more for Cars.com
and Hotels.com than it would for JoesUsedCars.com and
In our original comments, we challenged the author, and ICANN itself, to
disclose their own switching costs, by accepting/rejecting direct offers to
purchase their domain names:
They ignored this, and simply wave their hands and pretend that switching costs
are insignificant or are exaggerated. It appears ICANN is prepared to say
anything in order to justify new gTLDs.
This report is worthless, and ICANN needs to do the full and independent
economic analysis to justify the introduction of new gTLDs.