Economics of Information
Yale
Braunstein
IS 231 / Spring 2011
Quick links:
Course Outline (this page) |
COURSE OUTLINE
NOTES:
Part I - Special section on risk, information, and the financial crisis
A. An Introduction to Risk
(The following three articles are reprinted in P. Diamond & M. Rothschild, Uncertainty in Economics.)
J. S. Tamerin & H. L. P. Resnik, "Risk Taking by Individual Option--Case Study: Cigarette Smoking" in "Perspectives on Benefit Risk Decision Making" (Washington: National Academy of Engineering, 1972). Available at: http://legacy.library.ucsf.edu/tid/ajo54a99
A. Tversky & D. Kahneman, "Judgment Under Uncertainty: Heuristics and Biases," Science 185: 1124-31 (1974). Available at: http://links.jstor.org/sici?sici=0036-8075%2819740927%293%3A185%3A4157%3C1124%3AJUUHAB%3E2.0.CO%3B2-M
[Also reprinted in a book with the same title, edited by Kahneman, Slovic & Tversky. Partially available at: http://books.google.com/books?id=_0H8gwj4a1MC (look for pages 3-6.)]J. W. Pratt, "Risk Aversion in the Small and in the Large," Econometrica 32: 122-36 (1964). Available at: http://www.jstor.org/stable/1913738
C. J. McKenna, The Economics of Uncertainty (New York: Oxford Univ. Press, 1986), Ch. 1-3, 8-9.
M. J. Machina, "Decision-Making in the Presence of Risk," Science 236: 537-544 (May 1, 1987).
L. Phlips, The Economics of Imperfect Information. (Cambridge: Cambridge Univ. Press, 1988).
K. Borch, The Economics of Uncertainty (Princeton Univ. Press, 1968).
B. Understanding the financial crisis (with an emphasis on information issues)
J. A. Neuberger, "Financial Crisis: What Went Wrong? " in Economists Ink--Special Issue: The Global Financial Crisis (November 2008).
J. M. Quigley, "Compensation and Incentives in the Mortgage
Business"
in The Economists' Voice,
Vol. 5 : Iss. 6, Article 2.
Available at: http://www.bepress.com/ev/vol5/iss6/art2
.
C. B. Mulligan, "Is the Treasury Impotent?" in The Economists' Voice,
Vol. 5 : Iss. 7, Article 4.
Available at: http://www.bepress.com/ev/vol5/iss7/art4
.
J. Nocera, "Risk Mismanagement" in New York Times Sunday Magazine, January 4, 2009. Available at: http://www.nytimes.com/2009/01/04/magazine/04risk-t.html
Rep. Bobby Scott (D-VA-3rd district), "Rep. Scott Votes No on Bailout Citing Absence of Fair Value Provision" (Sept. 29, 2008). Available at: http://www.house.gov/list/press/va03_scott/pr_080929.html .
Rep. Bobby Scott (D-VA-3rd district), "Rep. Scott Votes No on Bailout Again, Cites Viable Alternatives to Bill" (Oct. 3, 2008). Available at: http://www.house.gov/list/press/va03_scott/pr_081003.html .
(Warning...I don't know how to cite a blog properly) WSJ "Deal Journal", "The Paulson Plan: 'Truly Idiotic' (interview with Charles Calomiris, posted by D. K. Berman (Nov. 25, 2008). Available at: http://blogs.wsj.com/deals/2008/11/25/the-paulson-plan-truly-idiotic/ .
Several items at NPR's "Planet Money":
How Credit Default Swaps Spread Financial Rot (Oct. 30, 2008)
Unregulated Credit Default Swaps Led to Weakness (Oct. 31, 2008)
Study Suggests Buying Toxic Assets Could Work (Nov. 18, 2008) [These guys are still pushing for 'reverse auctions'. Why might they be useful? Why not?)
Trust Me, Money Is About More Than Currency (Nov. 28, 2008)
The Man Who Predicted The Economic Meltdown (Dec. 4, 2008)
Where Did The Money In The Housing Market Go? (Dec. 5, 2008)
Y. M. Braunstein, "What We Need Is Information, Not Billions of Dollars" (Sept. 30, 2008). Available at: https://courses.ischool.berkeley.edu/i231/s09/Financial%20meltdown%20article%20093008a.doc
C. Recent works on the financial crisis (selected list)
*Bethany
McLean and Joe Nocera, All the Devils Are Here: The Hidden History of the Financial Crisis
(Portfolio Hardcover, 2010)
*Andrew
Ross Sorkin, Too
Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save
the Financial System--and Themselves (Penguin, updated edition, 2010)
*Gillian Tett, Fool's Gold:
The Inside Story of J.P. Morgan and How Wall St. Greed Corrupted Its Bold Dream
and Created a Financial Catastrophe (Free Press, 2010; earlier version,
2009) [An account of the creation of credit default swaps.]
*Gregory
Zuckerman, The Greatest
Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street
and Made Financial History (Crown Business, 2010) [John Paulson's decision
to short the housing market.]
*Andrew Redleaf and Richard Vigilante, Panic: The Betrayal of Capitalism by Wall Street and Washington
(Richard Vigilante Books, 2010) [Argues that efficient market theory was at the
root of the crisis.]
*Paul Muolo and Mathew Padilla, Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis
(Wiley, 2010) [Covers the birth and inner workings of the subprime mortgage
market.]
*Janet M. Tavakoli, Dear Mr.
Buffett: What An Investor Learns 1,269 Miles From Wall
Street (Wiley, 2010) [Expose of the seamy parts of the the
derivatives and CDO business.]
[The short
descriptions in brackets have been taken from McLean & Nocera's
"Acknowledgments".]
NPR Planet Money, "Toxie's Dead". Post
and podcast for this and the preceding stories in the series are available at: http://www.npr.org/blogs/money/2010/12/15/130079590/toxie-s-dead
[The
series provides useful insight into exactly how a financial asset becomes
worthless, i.e., "toxic".]
Part II - The remainder of the course
A. Information in the economy
(A)1. Introduction
D. M. Lamberton, "Introduction: 'Threatened Wreckage' or New Paradigm?" in The Economics of Communication and Information , Elger, 1996.
Hal R. Varian, "The Economics of Information Technology" (2001). Available at http://www.sims.berkeley.edu/~hal/Papers/mattioli/mattioli.html
Hal. R. Varian. "Markets for Information Goods", Available at http://www.sims.berkeley.edu/~hal/Papers/japan/index.html
Arrow,
Kenneth Joseph. Elements of the Economics of Information;
Information and Increasing Returns. Nankang,
F. Machlup, The
Production and Distribution of Knowledge in the
Mattessich, R. "On the Nature of Information and Knowledge and the Interpretation in the Economic Sciences." Library Trends. V41(n4):200 (1993).
L. White,
"The Sensible Economist's Guide to the Economics of Information" in The Economics of Information:
Proceedings of the 20th Annual Symposium of the
*M. Jussawalla, et al., eds., Information Technology and Global Interdependence.
*V. Mosco & J. Wasko, eds., The Political Economy of Information.
*Jerry L Salvaggio, ed., The Information Society: Economic, Social, and Structural Issues (Hillsdale, NJ: Larence Erlbaum Associates, 1989).
(A)2. Economic, occupational and industrial structure
M. Castells & Yuko Aoyama, "Paths toward the informational society: Employment structure in G-7 countries, 1920-90. International Labour Review. 133:5-33 (1994).
H.-J. Engelbrecht, "A comparison and critical assessment of Porat and Rubin's INFOMATION ECONOMY and Wallis and North's TRANACTION SECTOR," Inf. Econ. and Policy 9:271-290 (Dec. 1997).
S. Robinson, "Analyzing the Information Economy: Tools and Techniques," Inf. Proc. & Mgt. 22: 183-202 (1986).
M. R. Rubin, "The Secondary Information Sector: Its Meaning, Measurement, and Importance" in M. Jussawalla and D. M. Lamberton, eds., The Cost of Thinking: Information Economies of Ten Pacific Countries (Norwood, NJ: Ablex Publ. Corp., 1988).
Wolff, Edward N. "Productivity, Computerization and Skill Change," January 2002. Available at: http://www.econ.nyu.edu/user/wolffe/ [follow link to "Working Papers"]
Elliot, A., Tong, R., Varian, H., Wallenberg, F. 2000. "User Testing of the NAICS 2002 Classifications". (Forthcoming)
M. U. Porat, Definition and Measurement, vol. 1 of The Information Economy (Govt. Printing Office, 1977); excerpt in M. R. Rubin, Information Economics and Policy in the U.S., (Littleton, CO: Libraries Unltd., 1 983)..
Schement, J.R. "Porat,
*Benziger, The Control Revolution (Harvard, 1986).
*William J. Drake, ed., The New Information Infrastructure; Strategies for US Policy. (New York: Twentieth Century Fund Press, 1995).
*Katz,
Raul Luciano. The
Information Society: an International Perspective.
*The
Knowledge-based Economy.
*P. Strassmann, Information Payoff: the Transformation of Work in the Electronic Age (New York: Free Press, 1985).
*G. P. Sweeny, ed., Information and the Transformation of Society (New York: North-Holland and Elsevier, c. 1982).
(A)2.a. Background information on input-output analysis
W. Leontief, "Structure of World Production: Outline of a simple input-output formulation", Amer. Economic Rev. 64: 823-834 (December 1974). The classic article, now available at: http://www.jstor.org/stable/1815236.
W. Leontief, "Structure of the world economy" (Lecture to the memory of Alfred Nobel, December 11, 1973. From Nobel Lectures, Economic Sciences 1969-1980.) [Alternate source for the article above.]
(A)3. Information as a factor of production
E. E. Bailey &. A. F. Friedlaender, "Market Structure and Multiproduct Industries," Jour. Econ. Literature 20: 1024-48 (Sept. 1982).
R. M. Hayes & T. Erickson, "Added Value As a Function of Purchases of Information Services," The Information Society 1: 307-38 (1982)
Y. M. Braunstein, "Information as a Factor of Production: Substitutability and Productivity," The Information Society 3: 261-273 (1985)
Y. M.
Braunstein, "Information Inputs and Outputs in Firms and Quasi-Firms"
in M. Jussawalla, ed., The Cost of Thinking: Information
Economies of Ten Pacific Countries (Ablex,
1987).
A. Benlian, et al., "Dissemination of Content
Reutilization Practices in the German and U.S. Book Publishing Industry", Jour. of Media Business Studies
3(2): 41-61 (2006). Abstract available at: http://www.jombs.com/abstracts/Benlianetal.html
; full article available at: https://courses.ischool.berkeley.edu/i231/s07/JOMBS%20(2006)%20-%20Dissemination%20of%20Content%20Reutilization%20Practices.pdf
B. Productivity in the Service Sector
W. J. Baumol, "Macroeconomics of Unbalanced Growth: The Anatomy of an Urban Crisis," Amer. Econ. Rev. 57: 415-426 (June 1967).
C. S. Bell, "Comment," & W. J. Baumol, "Comment," Amer. Econ. Rev. 58: 877-884 and 896-897 (September 1968).
W. J. Baumol & S. A. Batey Blackman, "Electronics, the Cost Disease, and the Operations of Libraries," Jour. Amer. Soc. for Inf. Sci. 34: 181-191 (1983).
Blinder, Alan, "The Internet and the New Economy," (2000). Available at: http://www.brookings.edu/comm/policybriefs/pb60.pdf
Brynjolfsson, E. Various papers on productivity paradox, esp. "The Intangible Costs and Benefits of Computer Investments: Evidence from the Financial Markets." Available at http://ebusiness.mit.edu/erik/Intangible%20Assets%20and%20Growth%20Accounting.htm
Gordon, Robert, "Does the "New Economy" Measure up to the Great Inventions of the Past?" Journal of Economic Perspectives, vol.4, no.14 (Fall 2000), pp. 49-74. Available at http://faculty-web.at.northwestern.edu/economics/gordon/GreatInvention.pdf
W. J. Baumol, S. A. Batey Blackman & E. N. Wolff, "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," Amer. Econ. Rev. 75: 806-817 (September 1985)
*W. J. Baumol & W. G. Bowen, The Performing Arts: The Economic Dilemma
(New York: 1966)
C.
Economies of Scale & Scope; Industry Structure
David S. Evans & James J. Heckman (1984) "A test for subadditivity of the cost function with an application to the Bell system," American Economic Review, 615-623. With Erratum in 1986 American Economic Review, 856-858.
Yale M. Braunstein &
Richard E. Simnett, "Contestable Markets and Telecommunications," in M. A. Crew, ed., Deregulation and diversification of utilities (Kluwer Academic, 1989), p. 127-142.
Farrell, J., H.K. Monroe & G. Saloner, "The vertical organization of industry: systems competition versus component competition," Journal of Economics and Management Strategy 7(2): 143-182, 1998.
Lehr, W.,
"Understanding vertical integration in the Internet", EURO CPR'98.
D. Pricing information products and services
Y. M. Braunstein, "An Economic Rationale for Page and Submission Charges by Academic Journals", Jour. Amer. Soc. Inf. Sci. 28(6):355-358 (1977); reprinted in KEY PAPERS.
Chuang, J. & M. Sirbu, "Optimal Bundling Strategy for Digital Information Goods: Network Delivery of Articles and Subscriptions." Information Economics and Policy 11(2):147-176 (1999). (Abstract in reader; full text available at: http://www.sims.berkeley.edu/~chuang/pubs/ediip2.pdf
H. Varian & A. Acquisti, "Conditioning Prices on Purchase History," Marketing Science 24(3): 367-381 (Summer 2005). Available at: http://www.sims.berkeley.edu/~hal/Papers/privacy.pdf
Yannis Bakos & E. Bryjolfsson, (January 2000) "Bundling and Competition on the Internet: Aggregation Strategies for Information Goods," Marketing Science, Vol. 19, No. 1, pp. 63-82. Available at http://pages.stern.nyu.edu/~bakos/bci-abstract.html (abstract) and http://ebusiness.mit.edu/erik/bci-final.pdf (complete paper)
Bakos, Y. and Brynjolfsson,
E. (December 1999) "Bundling Information Goods: Pricing, Profits and
Efficiency," Management Science,
Vol. 45, No. 12, pp. 1613-1630. Available at http://pages.stern.nyu.edu/~bakos/big-abstract.html
(abstract) and http://pages.stern.nyu.edu/~bakos/big.pdf
(complete paper)
Domenico Ferrari & Luca Delgrossi, "Charging for QoS," Rivista di Informatica
29(2): 135-142 (Aug. 1999). Available
at: https://courses.ischool.berkeley.edu/i231/s07/Charging_for_QoS.pdf
Hal R. Varian, "Versioning Information Goods", available at: http://www.sims.berkeley.edu/~hal/Papers/version.pdf
Hal R. Varian, "Verisioning:
the
*H. M. Kibirige, The Information Dilemma: a Critical Analysis of Information Pricing and the Fees Controversy (Westport, CT: Greenwood Press, 1983).
Paul Krugman, "What Price Fairness?" New York Times, October 4, 2000. (Dynamic pricing at Amazon.com)
(Also see the Lommerud & Sorgard paper in Section K.)
(D)1. Information costs and benefits
F. Machlup, "Uses, Value, and Benefits of Knowledge" in D. W. King, et.al., Key Papers in the Economics of Information (White Plains: Knowledge Ind. Publ., 1983).
W. J. Baumol & J. A. Ordover, "Private Financing of Information Transfer: On the Theory and Execution" in KEY PAPERS.
Y. M. Braunstein, "Costs and Benefits of Library Information: The User Point of View" in KEY PAPERS.
W. D. Penniman, "Networking and Information Services: Prospects and Pitfalls" in R. M. Mason & John E. Creps, Jr., Information Services: Economics, Management, and Technology (Boulder: Westview Press, 1981).
E. Network Issues I: Externalities and Access
Koichiro Hayashi, "From Network Externalities to Interconnection: The Changing Nature of Networks and Economy," in The Economics of Information Networks, edited by Cristiano Antonelli, 1992.
S.J. Liebowitz & Stephen E. Margolis (1994) "Network Externality: An Uncommon Tragedy," Journal of Economic Perspectives, 133-150.
Nicholas Economides, "The Economics of Networks," available at: http://www.stern.nyu.edu/networks/top.html (Try to ignore the awful sound effects.)
S.J. Liebowitz & Stephen E. Margolis (1995) "Are Network Externalities a New Source of Market Failure?" Research in Law and Economics. Available at: http://wwwpub.utdallas.edu/~liebowit/netwextn.html
Luis Cabral, David Salant & Glenn Woroch, "Monopoly Pricing with Network Externalities," International Journal of Industrial Organization (1997).
N. Curien & M. Gensollen, "Network Externality: Its Impact on Growth and Pricing of the Telephone Service," in [reference missing] p. 189-214.
Paul A. David, "Information Network Economics: Externalities, Innovations and Evolution," in The Economics of Information Networks, edited by Cristiano Antonelli, 1992.
Eli
M. Noam, "A Theory for the Instability of Public Telecommunications
Systems," in Cristiano Antonelli,
ed., The Economics of
Information Networks (North-Holland,
1992).
(E)1.
Bandwagon effects and Network Externalities
H. Leibenstein, "Bandwagon, Snob,
and Veblen Effects in the Theory of Consumers' Demand," Quarterly
Journal of Economics (May 1950), reprinted in W. Breit
and H.M. Hochman, Readings
in Microeconomics, Second Edition (New York: Holt, Rinehart and Winston,
Inc., 1971), pp. 115-116. Available at: http://www.jstor.org/stable/1882692
J. Rohlfs, "A Theory of
Interdependent Demand for a Communications Service," Bell
Journal of Economics and Management Science (Spring 1974), p.
16. Available at: http://www.jstor.org/stable/3003090
F. Network Issues II: Technical Standards
P. Drahos & I. Maher, "Innovation, competition, standards and intellectual property: policy perspectives from economics and law," Inf. Economics & Policy 16(1): 1-11 (March 2004). [This is the introductory article to a special issue with the same title. Several of the other articles are also very interesting.]
S. Besen & J. Farrell, "Choosing How to Compete: Strategies and Tactics in Standardization," Jour. of Econ. Perspectives 8(2):117-131 (1994)
S. Besen & G. Saloner, "The Economics of Telecommunications Standards," in R. Crandall and K. Flamm, ed., Changing the Rules (Brookings, 1989).
Yale Braunstein and Larry White (1985) "Setting technical
compatibility standards: and economic analysis," The
Antitrust Bulletin, 30, 337-355. Available at: http://www.ischool.berkeley.edu/~bigyale/Braunstein_white_tech_comp_stds.pdf
and at: http://heinonline.org/HOL/Page?handle=hein.journals/antibull30&div=19&g_sent=1&collection=journals
J. Farrell & M. Katz, "The Effects of Antitrust and Intellectual Property Law on Compatibility and Innovation," Antitrust Bulletin 43:609-650 (1998).
C. Shapiro & H. Varian, "The Art of Standards
Wars", Calif. Mgt. Rev. 41(2) 8-32 (Winter 1999).
Available at: http://www.bus.ualberta.ca/mlounsbury/ORG658/readings/standard%20wars.pdf
Assorted clippings on standards (PDF file; 16 pages)
Stanley Besen & Garth Saloner, "Compatibility standards and the market for telecommunications services," in R. Crandall and K. Flamm, ed., Changing the Rules (Brookings, 1989).
Paul A. David, "Some new standard for the economics of standardization in the information age," in [ref missing] p. 207-239.
Paul A. David, "Clio and the Economics of QWERTY," AEA Papers and Proceedings May 1985, 332-337.
Paul A. David & W. Edward Steinmueller (1994) "Economics of compatibility standards and competition in telecommunication networks," Information Economics and Policy , 217-241.
Joe Farrell & Garth Saloner, "Competition, compatibility and standards: the economic of horses, penguins and lemmings," in Product Standardization and Competitive Strategy, edited by H. Gabe., 1987.
S.J. Liebowitz & Stephen E. Margolis (1995) "Path Dependence, Lock-In and History," Journal of Law, Economics and Organization 11. 205-226.
Glynn S. Lunney (1990) "Atari Games v Nintendo: Does a closed system violate the antitrust laws?" High Technology Law Journal, 29-70.
G. Economics of the Internet
G. L. Rosston,
S. J. Savage, and D. M. Waldman, "Household Demand for Broadband Internet in 2010," The B.E. Journal of Economic Analysis
& Policy, (Vol.
10, Issue 1, 2010-Advances), Article 79. DOI: 10.2202/1935-1682.2541. Available at: http://www.bepress.com/bejeap/vol10/iss1/art79
N. Economides & B. Hermalin, "The Economics of Network Neutrality," NET Institute Working paper #10-25, December 2010, available at http://www.stern.nyu.edu/networks/Economides-Hermalin_Economics_of_Network_Neutrality.pdf
N. Kaminer & Y. Braunstein, "Bibliometric Analysis of the Impact of Internet Use on Scholarly Productivity", Jour. Amer. Soc. Inf. Sci., 49(8):720-730 (June 1998).
Eli Noam, "The Impending Doom of Common Carriage," (Aspen Institute, 1993). [Something to think about: Is this paper about trends in telecommunications, in the media, and/or about the Internet?]
Jeffrey K. MacKie-Mason & Hal R. Varian, (April 1993). "Pricing the Internet," available at: http://www-personal.umich.edu/~jmm/papers/Pricing_the_Internet.pdf
Jeffrey K. MacKie-Mason & Hal R.
Varian, (1993). "Some economics of the
Internet,"
available at:
http://www-personal.umich.edu/~jmm/papers/Economics_of_Internet.pdf
Andrew Odlyzko, "Internet pricing and the history of communications," Computer Networks 36 (2001), pp. 493-517. Also in Internet Services (Lee McKnight and John Wroclawski, eds.), MIT Press, 2001. Available at: http://dtc.umn.edu/~odlyzko/doc/history.communications1b.pdf
Carl Shapiro on software markets, Microsoft, etc. See: http://www.haas.berkeley.edu/~shapiro
Hal R. Varian, "Estimating the Demand for Bandwidth", http://www.sims.berkeley.edu/~hal/Papers/wtp/wtp.pdf
Hal Varian and Jeff MacKie-Mason. Usage
Pricing FAQs [PDF], Written for WWW '94
(
Jonathan Blake and Lee Tiedrich (1995) "The National Information Infrastructure Initiative and the Emergence of the Electronic Highway," Federal Communications Law Journal 46,
Gerald R. Faulhaber, "Pricing the Net: What Economists Do," paper for the Stanford Mini-Conference On Data Network Pricing, March 1995, 11 pgs.
Rob Frieden, "Dialing for Dollars: Will the FCC Regulate
Internet Telephony?"
* Lee W.
McKnight & Joseph P. Bailey, ed. Internet
economics. (
H.
Information Asymmetries & Market Failures
George A. Akerlof, "Behavioral Macroeconomics and Macroeconomic Behavior," Amer. Economic Rev. 92:411-33 (June 2002).
George A. Akerlof, "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," Quarterly Jour. of Economics 83: 353-74 (August 1969).
Michael Spence, "Signalling in Retrospect and the Informational Structure of Markets," Amer. Economic Rev. 92:434-59 (June 2002).
A. Michael Spence, "Job Market Signaling," Quarterly Jour. of Economics 87: 355-74 (August 1973).
Joseph E. Stiglitz, "Information and the Change in the Paradigm in Economics," Amer. Economic Rev. 92:460-501 (June 2002).
Joseph E. Stiglitz, "Equilibrium in Product Markets with Imperfect Information," Amer. Economic Rev. 69:339-45 (Papers and Proceedings Issue, May 1979).
Paul
Krugman, "Harvest of Lemons,"
I. Ownership of information: property rights from the economist's view
(I)1. General--readings on Coase's theorem
R. H. Coase, "The Problem of Social Cost," Jour. of Law and Economics 3: 1 (1960). [Good, brief discussions are in: "School's Brief: Of bees and lighthouses" The Economist (Feb. 23, 1991), pp. 72-73 and in The Economist, Feb. 17, 1996, p.67, which I quote here.]
Hal R. Varian, "Markets for Public Goods?'' Critical Review, 7(4): 539--557 (1994). [This is a rejoinder to Coase's lighthouse paper]
J. Hirshleifer, Price Theory and Applications (Prentice-Hall, 1975), pp. 449-454.
Mark MacCallum, "Efficient at What?" (1997 discussion paper of the Ministry of Justice, New Zealand. Available at: http://www.justice.govt.nz/pubs/reports/1997/efficient/Default.htm . [ Part two has a good discussion of what MacCallum describes as the "bargaining-and-efficiency" version and the "neutrality" version of Coase's Theorem. These are roughly equivalent to what I call Coase's first and second conjectures. ]
Mathematical Restatement of Coase's Theorem (with apologies to Baumol and Oates). Additional notes available at: http://courses.ischool.berkeley.edu/i231/s11/bees_lighthouses.htm
*Y. Barzel, Economic Analysis of Property Rights. (Cambridge: Cambridge Univ. Press, 1989).
(I)2. Property rights in information
S. M. Besen & L. J. Raskind, "An Introduction to the Law and Economics of
Intellectual Property," Jour. of Econ.
Perspectives 3:3-27 (Winter 1991). Available at: http://www.jstor.org/stable/1942699
Y. M. Braunstein, et. al., "Economics of Property Rights as Applied to Computer Software and Data Bases," report for CONTU, 1977; excerpt in G. P. Bush & R. H. Dreyfuss, Technology and Copyright (Lomond, 1979).
R. Cooter &. T. Ulen, "Topics in the Economics of Property Law,"
W. Landes & R. Posner, "An Economic Analysis of Copyright Law," Jour. of Legal Studies18:325 (1989).
I. E. Novos & M. Waldman,
"The Effects of Increased Copyright Protection: An Analytic
Approach," Jour. Pol. Econ. 92: 236 (1984). Available at: http://www.jstor.org/stable/1831385
P. Drahos and I. Maher, "Innovation, competition, standards and intellectual property law: policy perspectives from economics and law," Information Economics and Policy, Vol. 16 (No. 1), pp. 1-11 (March 2004). [In Section F of the course reader.]
S. Breyer, "The Uneasy Case for Copyright: A Study of Copyright in Books, Photocopies and Computer Programs," Harvard Law Review 84: 281 (1970). Available at: http://www.jstor.org/stable/1339714
N. L. Henry, "Copyright, Public Policy, and Information Technology," Science 183: 384-391 (Feb. 1, 1974).
D. Y. Peyton, "The Creation of Information: Property Rights and Subsidies" in J. Yurow, et.al., Issues in Information Policy, NTIA, U.S. Dept. of Commerce, 1981 (NTIA-SP-80-9).
*W. Landes & R. Posner, The Economic Structure of Intellectual Property Law (Harvard Univ. Press, 2003) (Review to be handed out in class or made available online.)
(I)3. Specific cases
Databases
Yale M. Braunstein, "Economic impact of database protection in developing countries and countries in transition," report for WIPO, 2002. Available at http://www.sims.berkeley.edu/~bigyale/Economics_of_DBProtection_summary.pdf (summary) and http://www.wipo.int/eng/meetings/2002/sccr/pdf/sccr7_2.pdf (complete paper).
Stephen M. Maurer, "Raw Knowledge: Protecting Technical Databases for Science & Industry" (1999). Available at http://www.sims.berkeley.edu/courses/is296a-3/s99/database.pdf
Other areas
M. Mustonen, "Copyleft--the economics of Linux and other open source software," Inf. Economics & Policy 15(1): 99-121 (March 2003).
M. Jussawalla, et al., "Major Issues
in Information Service Trade," in C. H. Lee and S. Naya,
Trade and Investment in Services in the Asia-Pacific Region.
S. M. Besen, "Private Copying, Reproduction Costs, and the Supply of Intellectual Property," Information Economics and Policy 2: 5-22 (1986).
S. M. Besen, et. al., "Copyright Liability for Cable Television: Compulsory Licensing and the Coase Theorem," Jour. of Law and Economics 21:67-95 (1978).
R. K. Filer, "A Theoretical Analysis of the Impact of Artists' Resale Royalties Legislation," Jour. of Cultural Econ. :1-28 (Summer 1984).
T. Goetzl & S. A. Sutton, "Copyright and the Visual
Artist's Display Right,"
Dean Baker, "Patent Medicine," The American Prospect, January 29, 2001
"Patently problematic,"
The Economist, Sep. 12, 2002. Available at: http://www.economist.com/science/displayStory.cfm?story_id=1325219
J. Telecommunications and Media Industries: Technology Basics and Economic
Issues
Richard Arnott, Bruce Greenwald and Joseph E. Stiglitz, "Information and economic efficiency," Information Economics and Policy, 6:77-88 (1994).
R. Entman & S. Wildman, "Reconciling Economic and Non-Economic Perspectives on Media Policy: Transcending the 'Marketplace of Ideas'," Jour. Communications 42:5-19 (1992)
L. Johnson, Dealing with monopoly in international telephone service: a U.S. perspective, Information Economics and Policy 4:225-247 (1989/91).
Eli M. Noam (1987) "The Public Telecommunication Network," Journal of Communication, 30-48.
E.E. Zajak, "Is Telephone Service an Economic Right?"
in Energy and
Communications in Transition, edited by H. M. Trebing,
MSU Public Utilities Studies, Michigan State University (1981), pp. 94-109.
K. Regulation - Old and New
Harvey Averch and Leland L. Johnson (1962) "Behavior of the Firm under Regulatory Constraint," American Economic Review, 1052-1069.
Robert Crandall, "The changing
Gerald R. Faulhaber (1995) "Public policy in telecommunication: the third revolution," Information Economics and Policy, 251-282.
Gerald R. Faulhaber, "Policy-induced competition: the telecommunications experiments," Information Economics and Policy, Vol. 15 ( 1): 73-97 (March 2003).
Roger G. Noll & Bruce M. Owen, "The Anticompetitive
Uses of Regulation:
Sam Peltzman, "The Economic Theory of Regulation after a Decade of Deregulation," Brookings Papers: Microeconomics 1989, 1-41.
Yale M. Braunstein, "Economic Issues of Local regulatory
Forbearance," Proceedings of the Pacific Telecommunications
Conference (2007).
Available at: http://www.ischool.berkeley.edu/~bigyale/Braunstein-EconIssuesLocalReglForbearance111906.pdf
Roger G.
Noll, "The Future of Telecommunications Regulation," Social Science
Working Paper 432,
Timothy J.
Tardiff & William E. Taylor, "Telephone
Company Performance Under Alternative Forms of
Regulation in the
E.E. Zajac (1970) "A Geometric Treatment of Averch-Johnson's Behavior of the Firm Model," American Economic Review, 117-120.
L. Economics of Research and Innovation
Y, M. Braunstein, W. J. Baumol & E. Mansfield, "The Economics of R&D," in B. V. Dean & J. L. Goldhar, ed., Management of Research and Innovation (TIMS Studies in the Management Sciences Vol. 15, North-Holland, 1980), pp.19-32.
K. J. Arrow, "Economic Welfare and the Allocation of Resources for Invention," in D. M. Lamberton, ed., Economics of Information and Knowledge (Penguin, 1971) and elsewhere. Original RAND report available at: http://www.rand.org/pubs/papers/P1856.html
H. Demsetz, "Information and Efficiency: Another Viewpoint," Jour. of Law and Economics 11: 1-22 (April 1969); also reprinted in Lamberton (as above).
J. Hirshleifer, "The Private and Social Value of Information and the Reward to Inventive Activity," Amer. Econ. Rev. 61: 561-574 (1971).
M. Game Theory
J. McDonald, Strategy in Poker, Business & War (New York: Norton, 1950 or other editions).
J. C. C. McKinsey, Introduction to the Theory of Games (New York: Mc-Graw Hill, 1952).
O. Morgenstern, "The Theory of Games," Scientific American 180: (No. 5) 22-25 (May 1949).
J. von
Neumann &. O. Morgenstern, Theory
of Games and Economic Behavior (Princeton Univ. Press, 2nd ed.,
1947 or other editions).
N. Optimal Search
S. Lippman & J. McCall, "The Economics of Job Search: A Survey-- Part I," Economic Inquiry 14: 155-90 (June 1976)
S. Lippman & J. McCall, "The Economics of Job Search: A Survey-- Part II," Economic Inquiry 14: 347-69 (Sept. 1976)
A. Schotter & Y. M. Braunstein, "Economic Search: An Experimental Study," Economic Inquiry 19: 1-25 (Jan. 1981)
Y. M.
Braunstein & A. Schotter, "Labor Market
Search: An Experimental Study," Economic
Inquiry 20: 133-44 (Jan. 1982)