Lisa Bu's J676 Blog

Monday, September 18, 2006

Response to the First Half of "Code" Book

The author argues that the Internet is regulable and four constraints can do the job: the law, social norms, the market, and architecture (i.e. code). I found the argument convincing. Just by accident, yesterday's "60 Minutes" program aired a story about Internet gambling and whether or not it should be regulated. How timely for our discussion!

Internet gambling is illegal in the United States, but millions of American do it on hundreds of web sites, often from the comfort of their homes. Usually those web sites are served from computers somewhere overseas. Because there's so much profit to make online, American gaming industry is crying for legalizing yet regulating Internet gambling. And it's definitely regulable using the constraints described in the "Code" book:
  • Law: punishment (e.g. fine, jail term) for illegal Internet gambling providers, licensing legal providers. Technology makes it easy for law enforcement to tell if a online gambling site's server sits in U.S. or overseas.
  • Norms: this is a bit hard to do because people can gamble online from their privacy of home, and keep their activity a secret. But at workplace, employer can post a warning that employees' online activities will be monitored. That will deter some people from visiting gambling sites.
  • Market: online gambling sites usually use credit card as transaction method. To control access to online gambling, credit card companies can be asked to refuse transaction if cardholder is American. If online gambling becomes legal, credit card companies can be asked to charge extra fee or tax for online gambling transactions, thus to discourage gamblers.
  • Architecture: online gambling sites can build in its code to deny access to people who are underage or from the United States. American Internet service providers can add a filter to block out online gambling sites to their subcribers. Families can set up filters and blocker on their computers to restrict their children's access to online gambling sites.

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