Course Description
Course: Free Elective Course
Title: Network and Information Economics
Code: ECO465
Semester: B
Instructor: G. Adjunct Lecturer (ESPA Grant)
Aims and Objectives
The purpose of this course is to introduce students to strategic behavior of firms providing network goods. While the utility of normal goods depends on the quantity consumed, the utility of network goods also depends directly or indirectly on how many other agents decide to consume the same good. Examples of network goods include telecommunication services, transport services, retail networks etc. Strategic behavior in markets with network goods will depend on the relevant importance of certain categories of characteristics, such as (i) the degree of complementarity and standardization of goods offered by different providers, (ii) network externalities in consumption, (iii) substantial transaction costs for the consumer in changing provider of a good or service (switching costs), (iv) substantial economies of scale in production. All these characteristics may be the object of strategic behavior by firms. These and similar issues are covered during the course.
Topics covered:
1. Introduction: key features of network goods network externalities, cooperation, compatibility, standards, switching costs, economies of scale
2. The Hardware Industry
3. The Software Industry
4. Technology Advance and Standardization
5. Telecommunication
6. Markets for information.
7. Banks and money
Course Books:
Varian, H. Μικροοικονομική. Μια Σύγχρονη Προσέγγιση. Εκδόσεις Κριτική, 2015.
Walter Nicholson, Christopher Snyder. Μικροοικονομική Θεωρία: Βασικές αρχές και προεκτάσεις, 3η έκδοση, Εκδόσεις Κριτική, 2018
Shy, O. The Economics of Network Industries, Cambridge, 2001