The internet, as a cornerstone of the modern information society, has created new digital markets and fundamentally transformed existing ones. After many insubstantial business ideas came to a sudden end with the burst of the dot-com bubble, companies like Amazon, eBay, and Google are now market leaders. This book systematically presents the special characteristics of the internet economy. It applies both well-known classical economic models to the internet and introduces new models. The book reveals the laws governing the internet economy, explains the success of established providers, and develops recommendations for the players in the internet economy. The results are discussed through numerous practical examples. The book is aimed at students, researchers, and decision-makers who want to understand the internet economy.