Ghosh's model of trade on the Internet was interesting. Treating knowledge as sort of a currency of Net economy is also illuminating. But I think his models or arguments are metaphors, rather than scientific propostions.
"Life on the Internet is like a perpetual auction with ideas instead of money." "Every exchange of knowledge is like the trade of economic goods." Such statements depicts the net economy well, where knowledge travels freely and accumulated knowledge yields power.
However, knowledge and economic goods or currency may have things in common but are not identical. Knowlege market is always an incomplete one. Quality of knowledge is overwhelminglyl important and differentiated. If we let mechanism of supply and demand decide the distribution of knowlege, I think in most cases, "bad knowledge will drive out the good." Some knowlege, such as public information has to be constantly supplied, I guess, regardless of the demand.
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