Analysis of Externality Based on Internet

With the rapid development of the internet economy, traditional economic models have a significant change and new economy theoretical study is rising. The paper researches on externality of internet, combing supply and demand curve model, based on the research in review at home and abroad. The author proposed that network negative externality could not be ignored, and to solve the problem of network negative externality by measures of increasing public network construction, combining moral and legal, using economic method based on competition etc.