Comments on: The Economics of Supply and Demand http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/ Dominik's blog about domain names, web search, online marketing and economics. Thu, 20 Nov 2008 12:34:05 +0000 http://wordpress.org/?v=2.6.3 By: Heather http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-3869 Heather Thu, 07 Aug 2008 05:06:16 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-3869 Interesting write, but you can't just leave it to .com You can have a flower.com, flower.net, flower.me, etc. .Com is king of the hill now, but others are becoming increasingly popular and to eleviate the dwindling of supply. . . a dot eu is created or dot org Your theory neglects to take into consideration that other dots are increasing. Interesting write, but you can’t just leave it to .com You can have a flower.com, flower.net, flower.me, etc. .Com is king of the hill now, but others are becoming increasingly popular and to eleviate the dwindling of supply. . . a dot eu is created or dot org Your theory neglects to take into consideration that other dots are increasing.

]]> By: » Coase Theorem & Domains : Domain Bits http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-3800 » Coase Theorem & Domains : Domain Bits Mon, 07 Jul 2008 04:03:13 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-3800 [...] Dominik provided a basic economic analysis of the supply and demand of domain names. Then today Steve Levitt of Freakonomics made a post about the Coase Theorem and Domain Names. [...] [...] Dominik provided a basic economic analysis of the supply and demand of domain names. Then today Steve Levitt of Freakonomics made a post about the Coase Theorem and Domain Names. [...]

]]> By: DomainerPro http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2698 DomainerPro Wed, 28 Nov 2007 03:00:51 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2698 So how did your business school graduate friends respond to the supply and demand graphs? **ANSWER** They remained skeptical. It takes longer for some people to recognize opportunities than for others; nothing wrong with that. We met to have fun and not to talk business anyway, so we moved on to another topic. :) So how did your business school graduate friends respond to the supply and demand graphs?

**ANSWER**

They remained skeptical. It takes longer for some people to recognize opportunities than for others; nothing wrong with that. We met to have fun and not to talk business anyway, so we moved on to another topic. :)

]]> By: Steve http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2697 Steve Tue, 27 Nov 2007 09:59:59 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2697 Interesting post. However, their needs to be some correlation between the figures provided (i.e what does 6 or 8 represent in any of the charts?). Your point is well taken and should include a chart showing elasticity (substitutes). Nonetheless, nice! **ANSWER** Thanks for your comment, Steve. You're right about that, of course, but as I said in my post, I only used relative numbers instead of hard facts or realistic values, because I don't have any dependable data on hand. So what these numbers represent is simply that the value of domains "goes up"; I didn't factor in any elasticity. That's also because I didn't want to make a thorough industry analysis but I wanted to explain the effects of the powers of supply and demand on the domain name market in way as simple as possible. You're right, though, that it would be interesting to see a realstic and more accurate domain industry report based on proven average sale prices from the past up to the present with graphs showing the actual rise in value of .com domains. I have indeed played with the idea of writing such an extensive report for quite some time now, but so far I've just been too busy to get started with it and I'm still looking for a dependable source for the vast amount of domain sales data needed as well as a solution to get all that data into one database that makes it easy to sort and analyze the domains and sale prices. After all, the number of domain sale records to be analyzed would be well in excess of 100,000. Interesting post. However, their needs to be some correlation between the figures provided (i.e what does 6 or 8 represent in any of the charts?). Your point is well taken and should include a chart showing elasticity (substitutes). Nonetheless, nice!

**ANSWER**

Thanks for your comment, Steve. You’re right about that, of course, but as I said in my post, I only used relative numbers instead of hard facts or realistic values, because I don’t have any dependable data on hand. So what these numbers represent is simply that the value of domains “goes up”; I didn’t factor in any elasticity. That’s also because I didn’t want to make a thorough industry analysis but I wanted to explain the effects of the powers of supply and demand on the domain name market in way as simple as possible.

You’re right, though, that it would be interesting to see a realstic and more accurate domain industry report based on proven average sale prices from the past up to the present with graphs showing the actual rise in value of .com domains. I have indeed played with the idea of writing such an extensive report for quite some time now, but so far I’ve just been too busy to get started with it and I’m still looking for a dependable source for the vast amount of domain sales data needed as well as a solution to get all that data into one database that makes it easy to sort and analyze the domains and sale prices. After all, the number of domain sale records to be analyzed would be well in excess of 100,000.

]]> By: 2w http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2696 2w Mon, 26 Nov 2007 22:58:40 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2696 ThANKs , ye have written real something here , ;--^), cheers 2w ThANKs , ye have written real something here , ;–^),
cheers 2w

]]> By: Nick http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2695 Nick Mon, 26 Nov 2007 22:22:04 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2695 Well-said. The uniqueness or we should perhaps say non-fungibility of domain names is what drives the argument. Is this what people are failing to comprehend about domain names? You can't back up your SUV without crashing into a Starbucks, but once flowers.com is taken, there can't be any more. I for one hope the general public doesn't figure that out any time soon. ;) Well-said. The uniqueness or we should perhaps say non-fungibility of domain names is what drives the argument. Is this what people are failing to comprehend about domain names? You can’t back up your SUV without crashing into a Starbucks, but once flowers.com is taken, there can’t be any more.

I for one hope the general public doesn’t figure that out any time soon. ;)

]]> By: Economic 101, The Domain Version at TH·E CON·CEP’TU·AL·IST http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2693 Economic 101, The Domain Version at TH·E CON·CEP’TU·AL·IST Mon, 26 Nov 2007 21:42:38 +0000 http://www.dmueller.com/2007/11/26/domain-names-domains/the-economics-of-supply-and-demand/#comment-2693 [...] continue reading here.. [...] [...] continue reading here.. [...]

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