Rapid development of the Internet and advances in information technology and telecommunications are having significant impacts on the economy and the organization of industries. Internet Economics examines economic, policy, and strategic issues concerning the Internet, the production of information goods, and e-commerce markets. The role the Internet plays in information exchange and commerce, and the forces that determine business strategy in the Internet economy are described with the aid of case studies, and the explanation of fundamental economic concepts. Topics: Internet economy; supply, demand, and market structure; pricing the Internet and information goods, price discrimination, competition and strategic behavior, product differentiation and switching costs, economics of networks, taxing e-commerce and Internet infrastructure, access and information policy. On completion of the course, students will appreciate that economic and policy analysis is an inexact social science-many assumptions and abstractions are required to build practical, real world economic models, which explain the Internet's impact on business and markets in general.

Review of economic concepts and principles Electronic commerce, the Internet and the information economy Market structure, demand and supply Product differentiation, games, and the market for lemons Pricing the Internet Price discrimination and the Internet Second-degree price discrimination Consumers search for information The Internet and intellectual property Switching costs and lock-in Market structure, customer acquisition and retention Network externalities Network effects and positive feedback Tying and bundling Convergence of offline and online markets

Provide students with an appreciation of the interdisciplinary approach to studying telecommunications and the Internet. In particular, students will learn that economic and policy analysis is an inexact social science. Many assumptions and abstractions are required to model the underlying economics of the Internet. Students are required to visit local libraries and other research institutions to obtain reading materials, data, etc. for research and investigative activities.

TLEN 5835 (Economics/Policy/Management Aspects of Telecommunications). Students must understand intermediate algebra, calculus, and statistics.

Web access, local library access, e-mail account, and spreadsheet software.