Economics and CPS Seminar mini-course: Technologies and Markets: Why (and when) the Prices Lose Their (old) Meaning
Date: May 08, 2015 12:00 pm – May 08, 2015 1:00 pm
May 8, 2015
Technologies and Markets: Why (and when) the Prices Lose Their (old) Meaning
We begin to shift our attention from distributive considerations to production-consumption (supply-demand) considerations. I will cover the basics of supply-demand in the presence of switching costs and network effects. In addition, I would summarize what we have learned so far, and discuss "loose ends," esp.:
1. property rights for public goods and property rights for co-producers of complex goods
2. how the property rights are assigned (models of allocating the rights)
3. ex ante vs ex post perspective: time inconsistent optimal policies
4. endogeneity of property rights allocation
Literature:
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1. J.~Farrell and P.~Klemperer, 2007. Coordination and Lock-In: Competition with Switching Costs and Network Effects. Handbook of Industrial Organization, v.~3, ch.~31, 1967-2072. M. Armstrong and R. Porter (eds.), North-Holland.
2. Hall Varian, 2010. Information Technology, ch. 35. Intermediate microeconomics : a modern approach, 8th ed., Norton, NY.
http://www.amazon.com/Intermediate-Microeconomics-Approach-Hal-Varian/dp...
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A very short quiz:
"Spectacularly automated, astonishingly fragmented, and complicated beyond the comprehension of rank-and-file consumers by conceivably well-meaning regulators and less well-meaning Insiders."
Question: What is the subject of this quote?
Answer: Multiple choice (mostly):
A. Electricity: next gen. distribution system, OR/AND present day wholesale markets, OR/AND next gen. (interoperability and relations between generation, transmission, distribution)
B. Communications (wired & wireless): co-production by internet service provider(s) (ISP), content provider(s) (CP) and content distribution network(s) (CDN) esp. under an imposition of network neutrality
C. All of the above
D. None of the above
E. Please, suggest a (more) precise answer
Submitted by Carolyn Winter
on
May 8, 2015
Technologies and Markets: Why (and when) the Prices Lose Their (old) Meaning
We begin to shift our attention from distributive considerations to production-consumption (supply-demand) considerations. I will cover the basics of supply-demand in the presence of switching costs and network effects. In addition, I would summarize what we have learned so far, and discuss "loose ends," esp.:
1. property rights for public goods and property rights for co-producers of complex goods
2. how the property rights are assigned (models of allocating the rights)
3. ex ante vs ex post perspective: time inconsistent optimal policies
4. endogeneity of property rights allocation
Literature:
=======
1. J.~Farrell and P.~Klemperer, 2007. Coordination and Lock-In: Competition with Switching Costs and Network Effects. Handbook of Industrial Organization, v.~3, ch.~31, 1967-2072. M. Armstrong and R. Porter (eds.), North-Holland.
2. Hall Varian, 2010. Information Technology, ch. 35. Intermediate microeconomics : a modern approach, 8th ed., Norton, NY.
http://www.amazon.com/Intermediate-Microeconomics-Approach-Hal-Varian/dp...
========================================
A very short quiz:
"Spectacularly automated, astonishingly fragmented, and complicated beyond the comprehension of rank-and-file consumers by conceivably well-meaning regulators and less well-meaning Insiders."
Question: What is the subject of this quote?
Answer: Multiple choice (mostly):
A. Electricity: next gen. distribution system, OR/AND present day wholesale markets, OR/AND next gen. (interoperability and relations between generation, transmission, distribution)
B. Communications (wired & wireless): co-production by internet service provider(s) (ISP), content provider(s) (CP) and content distribution network(s) (CDN) esp. under an imposition of network neutrality
C. All of the above
D. None of the above
E. Please, suggest a (more) precise answer