DN: Distribution Networks: Economics, Market Structure and Strategies
IMPORTANT: Dr. Pollitt has supplied an UPDATED reading list in PDF form. PLease refer to this document for an up-to-date set of readings I will be refining this page to reflect his changes, and will continue to post presentation materials. However, the PDF file is the primary source for class readings.
Electricity, water, telecommunications, railways and recorded music
are all examples of goods and services that are provided across networks.
The internet has recently shown the power new channels of distribution have
to upset companies reliant on existing distibution networks. The module
will provide ways of thinking about the economic issues raised by the industries
based on distribution networks. We do this by starting with a complex current
case study to illustrate how the ownership, technological, monopoly, regulatory
aspects of distribution networks may be analyzed. By doing this we seek
to analyze how public policy and private strategies toward network industries
will develop in the future.
Paper Leader: Dr. M.
Lecturers: Dr. M. Pollitt & Dr.
F. Field (WWW) (MIT)
Times: Fridays, 10:00-12:00
||Napster: Technology, Property
& Policy Issues in Network Distribution
- A Brief History of the Internet
; The Internet Society; Leiner, Cerf, Clark, Kahn, Kleinrock, Lynch, Postel,
Roberts and Wolff.
- Who Owns the Internet?
; Nancy Weil; The Industry Standard; March 20, 2000.
- How Napster
- The Scratchy Record Of the
Online Music Debate; David Segal; Washington Post; January 10,
- (Note: No longer online) Record labels, music publishers at impasse;
Dawn Chmielewski; SiliconValley.com; August 23, 2001.
Instead, read ASCAP and BMI:
Protectors of Artists or Shadowy Thieves?; Harvey Reid. This online
article described the ASCAP/BMI process that we discussed in class Friday,
and raises some questions. (It is not quite as perjorative a piece as the
title might imply!)
- Glitterati v. Geeks;
Newsweek Magazine; Steven Levy; October 14, 2002.
Network Services and Ownership: The Principles and
Allocation Mechanisms to Property Rights
- Code and Other Laws of Cyberspace
; Lawrence Lessig; Basic Books; New York, NY; 1999; Chapters 1-8 ,10, Appendix
(Library ref: JIMS: HF5415.1263.L47)
- Innovation, Regulation and
the Internet; Lawrence Lessig; American Prospect; V.11, n.10,
March 27, 2000.
- The Right To Read; Richard
Stallman; originally appeared in the Communications of the ACM, v.40,
no.2; February 1997
- The Economy of Ideas;
John Perry Barlow; originally in Wired; Issue 2.03; March 1994.
- The Many Futures of Music,
Maybe One of Them Real; Jon Pareles; New York Times; January 10,
- Law Professor Sparks a New
Debate Over Flaws in Digital-Copyright Act; Andrea L. Foster; Chronicle
of Higher Education; October 12, 2001.
- Where the Music Will Be Coming
From; Kevin Kelley; New York Times; March 17, 2002. (One of the
few double-starred articles in my collection! Note also that we will
be coming back to this one at the close of the term.)
- "The Meaning
of Privatization;" P. Starr; Yale Law and Policy Review; V.6;
pp. 6-41; 1988.
- "Systems Competition and Network Effects;" M. L. Katz and C. Shapiro;
Journal of Economic Perspectives; V.8, N.2; pp. 93-115;
1994. (Accessible via JSTOR - UK; US)
- The Economics of Network Industries; O. Shy; Cambridge
University Press; Chapters 2 & 7; 2001. (Library ref: JIMS: HD9696.8.A2 S49,
Marshall: 22 B 157
- Regulatory Reform; M. Armstrong, S. Cowan and J. Vickers; MIT
Press; Chapter 5; 1994 (Libary ref: Marshall: 27 C 82, JIMS: HD3616.G72 A75)
- "Economic Perspectives on Privatization;" J. Vickers and Y. Yarrow;
Journal of Economic Perspectives; V.5, N.2; pp. 111-132;
1991. (Available from EBSCO
- Intermediate Economics; Varian, H.; W. W. Norton; 1999. Chapter
34. (Library ref: JIMS: HB172.V37 1999 Marshall: 17 D 83e)
The Economics of Copyright, The Internet and Network
- Economides, N. (1996); The Economics of Networks
, International Journal of Industrial Organisation, Vol.14, No.2.
- Dolfsma, W. (2000); How will the Music
Industry Weather the Globalisation Storm?, First Monday, Issue 5, No.5,pp.1-19.
- Hurt, R.M. and R.M.Schuchman (1966); The Economic Rationale of Copyright,
American Economic Review, Vol.; available at JSTOR
Technological Change and Competitive Opportunities:
The Case of Finland's Wireless Wonderland
- Coriat, B. and G. Dosi; "Learning how
to Govern and Learning how to solve problems: On the Co-Evolution of Competences,
Conflicts and Organizational routines" in The Dynamic Firm: The Role of
Technology, Strategy, Organization and Regions, A. Chandler, P. Hagstrom
and O. Solvell (eds.); Oxford University Press; 1998. (Library refs: JIMS - D30.28.C42 a;
Marshall - 21 E 85.
- Kulkki, S. and M. Kosonen; How Tacit Knowledge Explains Organizational
Renewal and Growth in the Case of Nokia in Managing Industrial Knowledge
I. Nonaka and D. Teece (eds.); London; Sage Publications; 2000.
- Castells, M. and P. Himanen; The Finnish model of the information
society; Sitra Report series 17; Vantaa; 2001. (Introduction, Chapters
1, 2, 7 and 8).
- Breshanan, T., A. Cambardella and A. Saxenian; "'Old Economy' Inputs
for 'New Economy' Outcomes: Cluster Information in the New Silicon Valleys;"
Industrial and Corporate Change; V.10, N.4; pp. 835-860;
- "What makes Nokia so good;" Fortune; May 1, 2000; pp. 31-38.
- The Council of Economic Advisors; "The Economic Impact of Third Generation
Wireless Technology;" Appendix 2: Case Study
of Finnish Wireless Cluster; 2000.
- Steinbock, D; The Nokia Revolution: The Story of an Extraordinary
Company That Transformed an Industry; AMACOM; New York; 2001. Chapter
4 and 11. (Library ref: JIMS - HD9697.T45 S73 a.
- The Nokia Revolution: The Story of an Extraordinary Company That
Transformed an Industry;D. Steinbock; AMACOM; New York; Chapters 4 and
11 (Library ref: JIMS - HD9697.T45 S73)
- "Learning how to Govern and ho to Solve Problems: On the Co-Evolution
of Competencies, Conflicts and Organizational Routines;" B. Coriat and G.
Dosi; in The Dynamic Firm: The Role of Technology, Strategy, Organization,
and Regions; Alfred Chandler, Jr., Peter Hagstrom and Orjan Solvell (eds.);
Oxford University Press; 1998; pp.103-133. (Library refs: JIMS - HD30.28.C42;
Marshall - 21 E 85; UL - 2000.9.1174)
Designing Markets: Rationale, Principles and Practice:
The Case of Californian Electricity
- Chao, H. and H. Huntington; "Designing
Competitive Electricity"; Kluwer; 1998. (Library ref: Marshall - 26 D 89
- H. Lee; "Disaster by Design: California's Experience with Electricity
Restructurin: The Origins (A) and The Storm Hits (B)"; Keendy School of Government
Case Program (CR14-01-1632.0; CR14-01-1633.0) (Available from www.ecch.cranfield.ac.uk)
- Joskow, P;
California's Electricity Market Meltdown; New York Times; January
- Besant-Jones, J. and B. Tenenbaum; The California
power Crisis: Lessons for Developing Countries; 2001.
- Borenstein, S., J. Bushness and F. Wolak; Diagnosing Market
Power in California's Restructured Wholesale Electricity Market; 2000.
- Commonwealth of Virgian State Corporation Commission; Crisis of
June 1998; 1998.
- Hogan, W.;
The California Meltdown; 2001.
- Hogan, W.; Competitive
Electricity Market Design: A Wholesame Primer; 1998.
- Joskow, P.; "California's Electricity Crisis;" Oxford Review of Economic
Policy, V.17, N.3; pp. 365-388. (earlier
version) (Library ref: )
Newbery, D.; Regulating
Unbundled Network Utilities; 2001.
Midwest Power Supply Crisis of June 1998; Commonwealth of Virginia: State
Corporation Commission; 1998
- Green, R. (2001); Markets for Electricity in Europe; Oxford
Review of Economic Policy, V.17, n.3, pp. 329-345. (Available on Ingenta)
The Economic Regulation of Networks: Setting Price
Controls in the UK Water Industry
- Water and Sewerage Industries General Efficiency and Potential Improvement
; Europe Economics; London; Chapters 5 and 6; 1998. (Library reference:
- National Audit Office (2002);
Pipes and Wire Report, pp 1-41.
- Shleifer, A (1985); A Theory of Yardstick Competition;
Rand Journal of Economics, V.16, n.3, pp. 319-327. (Available Marshall and
Applied Economics Libraries)
in Network Industries: Lessons from BT, Scottish Power and AOL-Time Warner
- "Scottish Power plc. (Chapter 3); K. Boyfield; Transformation in
the Utilities Market; V.1; London; Chartered Institute of Marketing;
pp.24-36. (JIMS-DESK Boyfield 1a-b)
- Rubinfeld, D. L. and Singer, H. J. (2001); Open Access
to Broadband Networks: A Case Study of the AOL/Time/Warner Merger; Berkeley
Technology Law Journal, V.16, pp. 631-675. (Available on EBISCO)
- Case Study: British Telecom: In search of the right formula;
M. G. Pollitt and T. Summanen; November 2002 (forthcoming at this WWW site).
|December 2 (**)
Roundtable: Strategic Innovation in the Face of New
Distribution Technologies: Napster Revisited