Why does domain name registration cost the same despite massive internet growth?
Constant cost industries maintain a flat supply curve even when demand surges. This video examines why domain name registration remains inexpensive as the internet expands, illustrating how these specific markets respond to increased demand.
In a constant cost industry, expanding supply requires only a negligible increase in inputs. Because the cost of production does not rise significantly with output, the supply curve remains flat.
Domain name registration serves as a primary example of this phenomenon. Despite the rapid growth of the internet, the price to register a new domain has stayed at approximately six to seven dollars.
