The Economics of Information Technology is a concise and accessible review of some of the important economic
factors affecting information technology industries. These industries are characterized by high fixed costs and
low marginal costs of production, large switching costs for users, and strong network effects. These factors combine
to produce some unique behavior. The book consists of two parts. In the first part, Professor Varian outlines the
basic economics of these industries. In the second part, Professors Farrell and Shapiro describe the impact of
these factors on competition policy. The clarity of the analysis and exposition makes this an ideal introduction
for undergraduate and graduate students in economics, business strategy, law and related areas.
Professor Hal R. Varian is one of the world�s leading authorities in the field
Based on the 2001 Mattioli Lecture at Bocconi University, Milan
Overview of economic phenomena that are important for high-technology industries
Table of Contents
Part I. Competition and Market Power:
1. Introduction
2. Technology and market structure
3. Intellectual property
4. The Internet boom
5. Differentiation of products and prices
6. Switching costs and lock-in
7. Supply-side economies of scale
8. Demand-side economies of scale
9. Standards
10. Systems effects
11. Computer mediated transactions
12. Summary Hal R. Varian
Part II. Intellectual Property, Competition and Information Technology:
13. Introduction
14. Patents, trade secrets and copyrights
15. Differentiation of products and prices
16. Switching costs and lock-in
17. Standards and patents
18. Do we need to reform the patent system? Joseph Farrell and Carl Shapiro.
