Part I. Refreshing and advances on IO theoretical topics. Market power and sources of market power 1.Oligopoly models: Cournot, Bertrand, Hotelling, Stackelberg. Static and dynamic aspects of imperfect competition:Sequential choice: Stackelberg, Properties of free-entry equilibria, The Cournot model with free entry, Price competition with free entry, Monopolistic competition, Industry concentration and firm turnover, Exogenous versus endogenous sunk costs, 2 Product differentiation: Empirical analysis: Probabilistic choice and the logit model, Empirical analysis of horizontal product differentiation and vertical product differentiation, Nested logit 3 Asymmetric information, price and advertising signals:Asymmetric information problems, Advertising and price signals 4 Consumer inertia: Uninformed consumers and search costs, Price dispersion, Consumer search, Empirical investigation of price dispersion, Switching costs, Coupons and endogenous switching costs, Estimating switching costs, Customer poaching
Part II. Networks, Standards and Systems, Market Intermediation 5. Markets with network goods: Network effects, Direct and indirect network effects, Network effects and switching costs, Empirical evidence on network effects, Markets for a single network good, Modelling the demand for a network good, Markets for several network goods, Demand for incompatible network goods, Oligopoly pricing and standardization 6 Strategies for network goods: Choosing how to compete, Analysis of standardization, Strategies in standards wars, Building an installed base for pre-emption, Backward compatibility, Expectations management, Public policy in network markets, Ex ante and ex post interventions 7 Markets with intermediated goods: Intermediaries as dealers, Intermediated versus nonintermediated trade, Dealer versus pure platform operator, Intermediaries as matchmakers, Sorting by an intermediary in a matching market, Intermediaries as two-sided platforms, The price structure for intermediation services, Competing intermediaries, Implications for antitrust and regulation, Network effects in media industries 8 Information and reputation in intermediated product markets: Intermediation and information, Information overload, ‘Infomediaries’ and competition in search markets, Information and recommendation networks, Intermediation and reputation, Certifying intermediaries, Reputation systems
Part III. Selected topics in ICT industry: Media Industries 9 The Economics of Network Neutrality: Centrality of the access question, Private and social incentives to (not) prioritize contents 10 The Economics of Spectrum allocation: Auctions for competitive spectrum allocation; Private and social values in auction design11 The media markets as two-sided markets: The role of intermediaries in: Media, Payment card, Operating systems 12 Internet markets: Scale and customization, Online and offline advertising: targeting, obtrusiveness and privacy, Online and offline commerce 13 Features of the (traditional) media markets: The first side: Audience, The second side: Advertising, Markets for news, TV markets, Movie market, Music market 14 Variety in media industry: Program diversity. Information plurality 15 Content production: Risk sharing and vertical relations: News, Books: Author and Publisher, Music: Musician and Record Label, Films and TV Program Series 16 Some copyright economics: The incentive approach and the openness approach to copyright protection: A comparison, Digital piracy: a short review 17. Cloud computing: Platform competition, Cloud Security For a more detailed syllabus and the topics for the assignment, see the lecturer’s web page.