The Economics of Information Technology: An Introduction

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Cambridge University Press, Dec 23, 2004 - Business & Economics - 102 pages
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The Economics of Information Technology is a concise and accessible review of important economic factors affecting information technology industries. These industries are characterized by high fixed costs and low marginal costs of production, large switching costs for users, and strong network effects. These factors combine to produce some unique behavior. Professor Varian outlines the basic economics of these industries; Professors Farrell and Shapiro describe the impact of these factors on competition policy. An ideal introduction for undergraduate and graduate students in economics, business strategy, law and related areas.
 

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Contents

Competition and market power
1
Technology and market structure
3
Intellectual property
4
The Internet boom
5
Differentiation of products and prices
12
Switching costs and lockin
21
Supplyside economies of scale
25
Demandside economies of scale
33
Intellectual property competition and information technology
49
Patents trade secrets and copyrights
54
Differentiation of products and prices
73
Switching costs and lockin
77
Standards and patents
80
Do we need to reform the patent system?
82
Summary and conclusions
85
Bibliography
87

Standards
37
Systems effects
42
Computer mediated transactions
45
Summary
46
Index of names
97
Index of subjects
99
Copyright

Common terms and phrases

References to this book

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Tarleton Gillespie
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About the author (2004)

Hal R. Varian is the Class of 1944 Professor at the School of Information Management and Systems, the Haas School of Business, and the Department of Economics at the University of California, Berkeley.

Joseph Farrell is Professor of Economics in the Department of Economics at the University of California, Berkeley. He has served as Deputy Assistant Attorney General and Chief Economist at the Anti-Trust Division, US Department of Justice, 2000-2001.

Carl Shapiro is the Transamerica Professor of Business Strategy at the Haas School of Business at the University of California at Berkeley. He also is Director of the Institute of Business and Economic Research, and Professor of Economics in the Economics Department at the University of California, Berkeley.