The course is about the economics of information and communication. It deals with the implication of digitization technology on industry, organizational structure, and business strategy. Pricing strategies, bundling, and versioning of digital goods are examined. The course considers the managerial implications of social networks, search, targeted advertising, personalization,, network externalities.
Mainly Lecture Notes made available during classes. In addition students will find helpful material in:
1) Varian, H., Farrell, J., Shapiro, The Economics of Information Technology: An Introduction, Cambridge University Press;
2) Shapiro, C., Varian, H., Information Rules: A Strategic Guide to the Network Economy; Harvard Business;
3) Pindyck-Rubinfeld (2017), «Microeconomics», 9 ed (or later). Pearson Education, Cap. 11 (Pricing with market Power). Alternatively, Varian, H. (2007), «Intermediate Microeconomics
A Modern Approach», Ninth Edition, Norton, (chp. 26, Monopoly Behavior);
4) Varian, H. (2007), «Intermediate Microeconomics A Modern Approach», Ninth Edition, Norton, (chp. 18, Auctions; chp. 36, Information Technology).
The course aims at making students acquainted with the economics of information and communication. The technicalities will be kept to a bare minimum and brought back when needed. The course is therefore self contained.
The course is meant to be accessible to all students even to those with just a bare economic background
Mainly front line lectures (70%), case studies (30%).
Students should enroll to the course within the first week by accessing the E-Moodle platform. Non-attending students can also enroll in order to gain access to online material and lecture notes.
Enrolment on the E-Moodle platform is not a prerequisite in order to sit for the final examination
Type of Assessment
Students regularly attending lectures can take the final examination in the form of an essay on a topic previously agreed with the teacher.
Those not attending lectures will have to sit for a vival. Students can download Lecture notes from E-Moodle platform.
The Syllabus for attending and non attending students is the same. For both attending and non-attending students the examination aims at:
1) testing the command over the relevant theory;
2) ascertaining the capability of consistently applying the theory to explain observed data and behaviour.
Technology and market structure; Intellectual Property; The internet Boom; Differentiation of product an Prices;
Switching cost and lock-in; Supply side economies of scale; Demand side economies of scale; Standards; Computer mediated transaction.
Intellectual property, competition and information technology: Patents, trade secrets and copyrights; Differentiation of products and prices; Switching costs and lock-in; Standards and patents
Pricing information; Versioning information; Managing Lock-in; Network and positive feed-back; Cooperation and Compatibility. Auction theory; Position auction with application to on-line advertisement.