| ECONOMICS AND MANAGEMENT OF NETWORKS
(obiettivi)
Knowledge and understanding
The aim of the course is to introduce students to the new information economy and the economics of network industries. Students are expected to gain insight into how the specific features of technology and demand affect market structure, firms’ strategies and business models, as well as public policy in network industries.
Applying knowledge and understanding
By the end of the course, students should be able to use methods and models of microeconomics and industrial organization to understand and analyze the competitive dynamics in the new information economy, and specifically in network industries.
Making judgements
Lectures, practical exercises and problem-solving sessions will provide students with the ability to assess the main strengths and weaknesses of theoretical models when used to explain empirical evidence and case studies in the new information economy.
Communication
By the end of the course, students are able to point out the main features of the new information economy and network industries, and to discuss relevant information, ideas, problems and solutions both with a specialized and a non-specialized audience. These capabilities are tested and evaluated in the final written exam and possibly in the oral exam as well as in the project work.
Lifelong learning skills
Students are expected to develop those learning skills necessary to undertake additional studies on relevant topics in the field of the new information economy with a high degree of autonomy. During the course, students are encouraged to investigate further any topics of major interest, by consulting supplementary academic publications, specialized books, and internet sites. These capabilities are tested and evaluated in the final written exam and possibly in the oral exam as well as in the project work, where students may have to discuss and solve some new problems based on the topics and material covered in class.
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Codice
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10593279 |
| Modulo: ECONOMICS OF NETWORK INDUSTRIES
(obiettivi)
Knowledge and understanding
The course introduces students to the economics and management of networks. On the one hand, the course illustrates the main features of the new information economy, and discusses the prevailing and emerging business models. On the other hand, it explores competition and regulation issues in liberalized network industries, such as telecommunications, energy, and transportation.
Applying knowledge and understanding
Students are expected to be able to use methods and models of microeconomics and industrial organization to understand and analyze the impact of technology and demand on market structure, firms’ strategies and business models in the new information economy. They will also gain insight on the rationale and the scope for public policy in network industries.
Making judgements
Lectures, practical exercises and problem-solving sessions will provide students with the ability to assess the main strengths and weaknesses of theoretical models when used to explain empirical evidence and case studies in the new information economy and in network industries.
Communication
By the end of the course, students are able to point out the main features of the new information economy and network industries, and to discuss relevant information, ideas, problems and solutions both with a specialized and a non-specialized audience. These capabilities are tested and evaluated in the final written exam and possibly in the oral exam as well as in the project work.
Lifelong learning skills
Students are expected to develop those learning skills necessary to undertake additional studies on relevant topics in the field of the new information economy and network industries with a high degree of autonomy. During the course, students are encouraged to investigate further any topics of major interest, by consulting supplementary academic publications, specialized books, and internet sites. These capabilities are tested and evaluated in the final written exam and possibly in the oral exam as well as in the project work, where students may have to discuss and solve some new problems based on the topics and material covered in class.
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Lingua
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ENG |
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Tipo di attestato
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Attestato di profitto |
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Crediti
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3
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Settore scientifico disciplinare
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SECS-P/06
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Ore Aula
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12
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Ore Esercitazioni
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18
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Ore Studio
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-
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Attività formativa
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Attività formative affini ed integrative
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Canale Unico
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Mutua da
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1047212 ECONOMICS OF NETWORK INDUSTRIES in Data Science LM-91 REVERBERI PIERFRANCESCO
(programma)
1. Technology, demand and market structure in network industries
• Economies of scale and scope; Sunk costs
• Complementary goods or services; Network effects
• Market concentration
Readings:
- Shapiro-Varian, Chapter 1
- Slides
2. Market power and pricing strategies
• Menu pricing
• Bundling
• Switching costs and lock-in
Readings:
- Shapiro-Varian, Chapters 2, 3, 5, 6
- Church J., R. Ware (2000), Industrial organization: A strategic approach, McGraw-Hill (available at http://works.bepress.com/jeffrey_church/23): Chapter 5 (sections 5.1, 5.2, 5.4.3, 5.4.4, 5.5); Chapter 25 (section 25.4)
- Klemperer P. (1995), Competition when consumers have switching costs: An overview, Review of Economic Studies 62, pp. 515-539: Sections 1, 2, 3, 7, 8
- Kobayashi B. (2005), Does economics provide a reliable guide to regulating commodity bundling by firms? A survey of the economic literature, Journal of Competition Law and Economics 1, pp. 707-746: Sections 1, 2 (A, C, D), 3 (B), 4 (B)
3. Network externalities, standardization, and compatibility
• Demand side: users’ coordination and technology adoption
• Supply side: Compatibility strategies vs. standards wars
• Public policy in network industries
Readings:
- Shapiro-Varian, Chapters 7, 8, 9, 10
- Shy O. (2011), A short survey of network economics, Review of Industrial Organization 38, pp. 119-149: Sections 1, 2, 3 (3.1, 3.2, 3.4), 4, 6, 8
4. Two-sided markets
• Key features and examples
• Pricing issues and implications for public policy
Readings:
- Armstrong M. (2006), Competition in two-sided markets, Rand Journal of Economics 37, pp. 668-691: Sections 1, 2, 3
- Evans D.S., R. Schmalensee (2007), The industrial organization of markets with two-sided platforms, Competition Policy International 3, pp. 151-179: Sections 1, 2, 3, 4, 7
5. Liberalized network industries (telecommunications, energy, transportation)
• Natural monopoly and regulation
• Access pricing and competition
Readings:
- Church J., R. Ware (2000), Industrial organization: A strategic approach, McGraw-Hill (available at http://works.bepress.com/jeffrey_church/23): Chapter 24, sections 24.1 (24.1.1, 24.1.2, 24.1.3 overview), 24.5; Chapter 25, sections 25.1 (25.1.1, 25.1.2, 25.1.3), 25.2 (25.2.1), 25.3 (25.3.1, 25.3.2, 25.3.3), 25.4 (25.4.1, 25.4.2, 25.4.3, 25.4.4); Chapter 26, sections 26.2 (26.2.1, 26.2.2, 26.2.3, 26.2.4, 26.2.5), 26.3 (26.3.1, 26.3.2, 26.3.3, 26.3.4, 26.3.5 overview)
• Further readings: Collection of relevant articles from the press (file ‘Stories’ on the web site)
 The main reference textbook is:
· Shapiro C., H. Varian (1999), Information Rules: A Strategic Guide to the Network Economy, Harvard Business Press.
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Date di inizio e termine delle attività didattiche
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- |
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Modalità di erogazione
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Tradizionale
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Modalità di frequenza
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Non obbligatoria
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Metodi di valutazione
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Prova scritta
Prova orale
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| Modulo: ECONOMICS AND MANAGEMENT OF NETWORKS |
|
Lingua
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ENG |
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Tipo di attestato
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Attestato di profitto |
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Crediti
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3
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Settore scientifico disciplinare
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SECS-P/06
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Ore Aula
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12
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Ore Esercitazioni
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18
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Ore Studio
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-
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Attività formativa
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Attività formative affini ed integrative
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Canale Unico
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Mutua da
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10593279_2 ECONOMICS AND MANAGEMENT OF NETWORKS in Ingegneria Gestionale - Management Engineering LM-31 REVERBERI PIERFRANCESCO
(programma)
1. Technology, demand and market structure in network industries
• Economies of scale and scope; Sunk costs
• Complementary goods or services; Network effects
• Market concentration
Readings:
- Shapiro-Varian, Chapter 1
- Slides
2. Market power and pricing strategies
• Menu pricing
• Bundling
• Switching costs and lock-in
Readings:
- Shapiro-Varian, Chapters 2, 3, 5, 6
- Church J., R. Ware (2000), Industrial organization: A strategic approach, McGraw-Hill (available at http://works.bepress.com/jeffrey_church/23): Chapter 5 (sections 5.1, 5.2, 5.4.3, 5.4.4, 5.5); Chapter 25 (section 25.4)
- Klemperer P. (1995), Competition when consumers have switching costs: An overview, Review of Economic Studies 62, pp. 515-539: Sections 1, 2, 3, 7, 8
- Kobayashi B. (2005), Does economics provide a reliable guide to regulating commodity bundling by firms? A survey of the economic literature, Journal of Competition Law and Economics 1, pp. 707-746: Sections 1, 2 (A, C, D), 3 (B), 4 (B)
3. Network externalities, standardization, and compatibility
• Demand side: users’ coordination and technology adoption
• Supply side: Compatibility strategies vs. standards wars
• Public policy in network industries
Readings:
- Shapiro-Varian, Chapters 7, 8, 9, 10
- Shy O. (2011), A short survey of network economics, Review of Industrial Organization 38, pp. 119-149: Sections 1, 2, 3 (3.1, 3.2, 3.4), 4, 6, 8
4. Two-sided markets
• Key features and examples
• Pricing issues and implications for public policy
Readings:
- Armstrong M. (2006), Competition in two-sided markets, Rand Journal of Economics 37, pp. 668-691: Sections 1, 2, 3
- Evans D.S., R. Schmalensee (2007), The industrial organization of markets with two-sided platforms, Competition Policy International 3, pp. 151-179: Sections 1, 2, 3, 4, 7
5. Liberalized network industries (telecommunications, energy, transportation)
• Natural monopoly and regulation
• Access pricing and competition
Readings:
- Church J., R. Ware (2000), Industrial organization: A strategic approach, McGraw-Hill (available at http://works.bepress.com/jeffrey_church/23): Chapter 24, sections 24.1 (24.1.1, 24.1.2, 24.1.3 overview), 24.5; Chapter 25, sections 25.1 (25.1.1, 25.1.2, 25.1.3), 25.2 (25.2.1), 25.3 (25.3.1, 25.3.2, 25.3.3), 25.4 (25.4.1, 25.4.2, 25.4.3, 25.4.4); Chapter 26, sections 26.2 (26.2.1, 26.2.2, 26.2.3, 26.2.4, 26.2.5), 26.3 (26.3.1, 26.3.2, 26.3.3, 26.3.4, 26.3.5 overview)
• Further readings: Collection of relevant articles from the press (file ‘Stories’ on the web site)
The main reference textbook is:
· Shapiro C., H. Varian (1999), Information Rules: A Strategic Guide to the Network Economy, Harvard Business Press.
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Date di inizio e termine delle attività didattiche
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Date degli appelli
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Date degli appelli d'esame
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Modalità di erogazione
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Tradizionale
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Modalità di frequenza
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Non obbligatoria
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Metodi di valutazione
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Prova scritta
Prova orale
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