The Economics of Information Technology
An Introduction

A concise and accessible review of some of the important economic factors affecting information technology industries.

Hal R. Varian (Author), Joseph Farrell (Author), Carl Shapiro (Author)

9780521605212, Cambridge University Press

Paperback, published 23 December 2004

114 pages
21.6 x 0.6 x 14 cm, 0.14 kg

The Economics of Information Technology is a concise and accessible review of some of the 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. The book consists of two parts. In the first part, Professor Varian outlines the basic economics of these industries. In the second part, Professors Farrell and Shapiro describe the impact of these factors on competition policy. The clarity of the analysis and exposition makes this an ideal introduction for undergraduate and graduate students in economics, business strategy, law and related areas.

List of figures
The Raffaele Mattioli lectures
Part I. Competition and Market Power: 1. Introduction
2. Technology and market structure
3. Intellectual property
4. The Internet boom
5. Differentiation of products and prices
6. Switching costs and lock-in
7. Supply-side economies of scale
8. Demand-side economies of scale
9. Standards
10. Systems effects
11. Computer mediated transactions
12. Summary
Part II. Intellectual Property, Competition and Information Technology: 13. Introduction
14. Patents, trade secrets and copyrights
15. Differentiation of products and prices
16. Switching costs and lock-in
17. Standards and patents
18. Do we need to reform the patent system?
19. Summary and conclusions
Bibliography
Index of names
Index of subjects.

Subject Areas: Information technology industries [KNTX], Industry & industrial studies [KN], Business strategy [KJC], Business & management [KJ], Economics [KC]