Re: [ga] Letter from Lynn to Sheppard

[Jonathan Weinberg <weinberg@mail.msen.com>]

         Well, yes and no.  Seems to me it's appropriate to view a cost 
incurred by a firm as straightforwardly passed on on to consumers when [1] 
the firm is free to adjust its prices to reflect costs; and [2] the firm is 
operating in a competitive market & not collecting monopoly rents -- so 
that its prices simply reflect its costs plus a reasonable return.  If 
these two conditions aren't met, then it's much harder to tell how much of 
a cost to the firm comes out of its customers' pockets and how much comes 
out of its shareholders'.  If we exclude the folks for which ICANN-related 
costs are swamped by rounding errors, then I'd say the only constituency 
for which those two conditions are even arguably met is the registrars.

Jon


At 10:39 AM 5/10/2001 -0400, Michael Froomkin wrote:
>actually, doesn't 100% of the money come from the end users ultimately?
>
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>
>On Thu, 10 May 2001, Jonathan Weinberg wrote:
>
> > At 01:31 AM 5/10/2001 -0400, Danny reprinted a letter from Stuart Lynn
> > responding to the proposal that ICANN provide funds for the DNSO:
> > >[snip]
> > >Certainly other questions arose. Since 90% of ICANN's discretionary
> > >funds (that is, the portion not earmarked for a corresponding
> > >expense) comes from certain DNSO constituencies, for ICANN to provide
> > >financial support to the DNSO Secretariat would in effect be
> > >returning funds already raised from those constituencies. In other
> > >words, ICANN would be increasing its expenditures by $100,000 for
> > >which there would be a corresponding increase of $90,000 contributed
> > >from certain DNSO constituencies (the remaining 10% would essentially
> > >come from ASO contributed funds). If those constituencies wish to
> > >contribute $90,000 to the DNSO Secretariat, can they not choose to do
> > >so directly within the DNSO budget framework?
> >
> >          Lynn's letter does suggest a way forward:  Constituencies can
> > contribute to the DNSO budget in the same proportion that they contribute
> > to ICANN's base revenues directly.  Using the numbers from the proposed
> > 2001-2002 budget, that would translate roughly to:  60% from the
> > unsponsored gTLD registries; 26% from the ccTLDs; 10% from the registrars;
> > 3% from the sponsored TLD registries; and zippo from B&C, IPC, ISPCPC, and
> > NCDNHC.  The numbers would take some tweaking (that's rather too much for
> > the ccTLDs), but it's a start.
> >
> > Jon
> >
> >
> > Jonathan Weinberg
> > weinberg@msen.com
> >
> > --
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