Re: [wg-c] Eureka?

["Ross Wm. Rader" <ross@ebarn.com>]

> > Your analogy is probably the weakest one I have seen on this list.
> > Individual TLDs represent a scarce resource - burgers are not. There can
> > only be one rader.com and one rader.web - the value of each, determined
by
> > the market. Creating additional TLDs, or divesting existing ones has no
> > effect on the value of other TLDs.
>
> There is no scarcity at all. With the allowed length of a domain name,
there
> is a functionally infinite number of TLDs that can be created. There can
be
> a radar.com, radar.web, radar.site, radar.detector, etc.

That is a given, however your absolute views don't translate well from the
theoretical to the practical. An individual TLD is a scarce resource as
there can only ever be one .com, .site or .detector. Within those individual
TLDs there can only existing one SLD combination.

> Create enough TLDs,
> and you eliminate the problem. Your assertion that creating additional
> TLDs has no effect on the value of other TLDs is plainly wrong: the
> value of computers.com approaches nil when there are 300 other TLDs
> that can register the same name.

I don't disagree with creating a bazillion TLDs - as long as the process by
which they are created is sane, reasonable and equitable for as much of the
Internet population as possible. That doesn't change the real TLD economic
however. By your theory, by what amount does the existence for 200+ ccTLDs
deflate the value of a .com registration? I submit that the only way to
effect the actual value/price of a sld.tld is to affect the market demand
for the individual combination. Drugs.com is a perfect example of this - it
is much more desirable to the market than drugs.to or any other drugs.tld
combination. There is very little rationale behind this (although some
contend that NSI did an excellent job of "branding" .com) which completely
falls in line with every other single market driven economy.

hotdog.com may be very valuable to Sausage Software, hotdog.on.ca may be
very valuable to a street vendor in Toronto - but the existence of one does
not drive the value/price of the other - in any way, shape or form.

> TLDs has no effect on the value of other TLDs is plainly wrong: the
> value of computers.com approaches nil when there are 300 other TLDs
> that can register the same name.

I'm quoting this again to focus on another bit of your logic. Your statement
that "the value of computers.com approaches nil when there are 300 other
TLDs
that can register the same name." is ridiculous. The value of computers.com
remains the same because there is no other TLD that can register the same
SLD/TLD combination. The only force that can affect the market value of
computers.com is the market itself. To suppose that additional TLDs will
create price movement in .com is a purely theoretical arguement that you
have absolutely no hard data to support.

-RWR