Economics of Networks: Pricing, Auctions and Trading
Network industries play a crucial role in modern life and the economy would be very much diminished without communications and information networks. This course analyzes the economics of networks and communications services. Theoretical and practical aspects of the subject will be covered based on three pillars: technologies, pricing, and special topics (auctions, trading bandwidth, and regulation). Communications technologies are reviewed, traditional as well as new, such as the Internet, ATM, and wireless. The course then provides in-depth analysis of the economics of monopoly, oligopoly, and perfectly competitive markets, as applied to the telecom markets. Pricing alternatives are formalized using simple mathematical models. Students learn how network control and performance of networks tie with the economic analysis of consumer behavior. Special topics related to game theory, risk management of telecom operations, trading of bandwidth, as well as auctions of bandwidth and spectrum, are covered towards the end of the course.