“Cyberspace is no different from traditional cities, at least in economic terms. In a basic city model, you have a business district to which all residents commute, and property value is determined by proximity to that hub,” said Lindenthal, from Cambridge’s Department of Land Economy.
“It’s similar in cyberspace. The commute to, and consequent value of, virtual locations depend on linguistic attributes: familiarity, memorability and importantly length. A virtual commute is about the ease with which a domain name is remembered and the time it takes to type.
“The snappier and more recognisable a domain, the more it is going to be worth. What I find fascinating is that the observed transaction prices of domain names reveal a free market valuation of linguistic characteristics and language itself,” he said.
1. Overcrowded Internet domain space is stifling demand, suggesting a future ‘not-com’ boom
2. Monocentric Cyberspace: The Primary Market for Internet Domain Names, Lindenthal, Lindenthal, T. J Real Estate Finan Econ (2016). doi:10.1007/s11146-016-9547-2