Copyright © 1999 The Doonesbury Company

Class meets Wednesdays, 4 - 6 pm, at University of Arizona Science & Technology Park.

Professors:
Stan Reynolds ( reynolds@bpa.arizona.edu )
Office: McClelland Hall 401M
Phone: (520) 621-6251
FAX: (520) 621-8450

Mark Walker ( mwalker@arizona.edu )
Office: McClelland Hall 401G
Phone: (520) 621-6155
FAX: (520) 621-8450

Prerequisite: Economics 500.

We will use concepts and tools from microeconomics to analyze and help us understand the internet, electronic commerce, and other aspects of information technology. Readings will be assigned from Shapiro and Varian (see below), from lecture notes provided by the instructor, and from articles and websites. Readings for each topic will be assigned as we progress through the course.

Email: It is important that each student have an email account and check it regularly. We will communicate with you via email on a regular basis, and you'll miss important information about the course if you don't use email. Let Stan Reynolds know your email address at the beginning of the course.

Your grade for the course will be based on your performance on the following five components:

1. First Group Project.
2. Second Group Project.
3. Class attendance and participation.
4. A midterm exam.
5. A final exam.

What you should read:

• Information Rules, by C. Shapiro and H. Varian.
• As other readings are assigned, they'll be listed on the Articles page of this website.

1. Introduction
2. Competitive Markets
3. Market Power, Oligopoly, and Monopoly

4. Information as a Public Good
5. Information as an Experience Good
6. Scale Economies with Information Goods
7. Revenue Models and Pricing for Information Goods
8. Intellectual Property
9. Price Discrimination with Information Goods
10. Versioning and Bundling

Radio Industry Newspapers Offline and Online
MP3, Napster, etc.

11. Selling at a Posted Price
12. Auctions
13. Asymmetric Information, Lemons, and Reputation
14. Intermediaries and Disintermediation

FreeMarkets
VerticalNet
Peapod

15. Lock-In
16. Sell or Rent?
17. Durable Goods
18. Standards
19. Microsoft

The Facsimile Industry