General course information (this page)

Formal SIMS course description

Course Outline

INFOSYS 231  CCN: 42715  3 unit(s)		Economics of Information
Instructor(s)		Yale Braunstein E-mail: yale@sims.berkeley.edu Office: 203B South Hall
Time/Location		F 1:00 - 3:00 202 South Hall

(Last updated 25 October 2002)

Weekly Schedule
 

Date	Topic / Major Readings	Section (*)
Aug. 30	Introduction to information in the economy; macroeconomics; input-output analysis; Machlup; Porat	A.1 & A.2
Sept. 6	Input-output analysis (continued); Rubin	A.2 & A.2.a
Sept. 13	Secondary information sector; information as an input (Hayes & Erickson, Braunstein); unbalanced growth (Baumol)	A.3 & B
Sept. 20	Economies of scale & scope (Bailey & Friedlaender); pricing	A.3 & F
Sept. 27	John Chuang on Internet economics (MacKie-Mason & Varian)	D & F
Oct. 4	Pricing; externalities; Coase's Theorem	G.1
Oct. 11	Intellectual property rights Types of intellectual property Economics of database protection (PPT file) History of Copyright in the US (from ARL & CNI)	G.2 & G.3
Oct. 18	Telecom;  proposals due Introduction to telecomm regulation (PPT file)	H & I
Oct. 25	Broadband industry structure (PPT file)	.
Nov. 1	Presentations start (link to presentation schedule) Technical compatibility standards (PPT file)	L

NOTE: (*) These sections are numbered to match the web version of the course outline.

General Information

• This is an MOT related course.  This course is for graduate students only.  Preference will be given for SIMS students and students in the MOT program.   Permission of the instructor required for all other students.
• Class meeting times: No change.  We shall continue to meet at the scheduled time, Friday 1:00 - 3:00 PM.  See below for information on optional review sessions.

 
• Prerequisites and specific information:
• Engineering students -- This is also ENG 298A.8. (The CCN is 28194; 3 units.) The prerequisites are courses in macro- and micro-economics or the permission of the instructor.
• Haas students -- This is also BA 290T.2.  The prerequisites are 201A and 201B or the equivalents or the permission of the instructor. Haas may tell you there is a lottery to get into this course or some other restriction, but I shall try to avoid this.  Contact me if you have problems enrolling.
• SIMS students -- A link to the course description is above. The prerequisites are courses in macro- and micro-economics or the permission of the instructor.

• Class format: Mix of lectures and student-led classes
• Required readings: Mix of course reader and additional readings
• The course reader is now available at Copy Central on Bancroft.
Basis for final grade: Research paper, class presentations, and class participation.  Click here for additional information.

"Review" classes

• In general, the review classes will meet on an occassional basis on Mondays from 12:30 PM to 1:30 or 2:00, in SH room 202.
• The first review class will meet on Monday, September 9, but at 11:00 AM . The topic will be "Theory of the Firm," covering cost and production functions. (Chapter 6.)
• Monday, September 16, 12:30 PM: Pricing under competition and monopoly.  (Chapters 8 & 9.)

The text is Frank & Bernanke, Principles of Economics, McGraw-Hill 2002. (ISBN 0-07-228962-7)
(It is assigned for Econ. 1 this semester.)

The text book website is at: http://www.mhhe.com/economics/frankb/student_index.mhtml
There are PPT lectures for each chapter at the web site.
Almost any other reasonably good, reasonably current text will work as asubstitute.  Most chapters should have direct parallels in every book.

ASSIGNMENT FOR MONDAY, SEPT. 9:

• Skim the introductory chapter(s) in whichever book you use  (Ch. 1-3 in Frank & Bernanke)
• Read the chapter on Supply & Demand (Ch. 4)
• Read or preview the chapter on competitve supply/costs (Ch. 6) <--this will be the lecture
• (OPTIONAL, but useful for the main lectures) Read or skim the intro chapters on macroeconomics (Ch. 17-18)


ASSIGNMENT FOR MONDAY, SEPT. 16:  Read or preview chapters 8 & 9

TOPICS FOR MONDAY, SEPT. 23:  (More from Ch. 9 plus additional material.)

• Dead-weight welfare loss from monopoly
• Price discrimination
• Multi-part pricing and other "creative" pricing techniques
• Key reference: Oi, Walter, "A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly," Quarterly Journal of Economics, Vol. 85, No. 1, February 1971, pp. 77-96.  Available at: http://www.jstor.org/view/00335533/di951803/95p00197/0

Assignments, etc.
 

For September 6:  Input-output problem (in Excel)

Solutions spreadsheet

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• NOTE: If you have difficulty in downloading any of these files, remember:
• Windows users should right-click on the hyperlink; some non-HTML files (e.g. Excel) work with IE 5 but not always with Netscape.
• Netscape users may need to use a "zipped" archive file. Send me an e-mail if you need a file "zipped."
• Mac users should click and hold.

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