DN: Distribution Networks: Economics, Market Structure and Strategies
Michaelmas 2002

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. Pollitt (Cambridge)

Lecturers: Dr. M. Pollitt & Dr. F. Field (WWW) (MIT)

Times: Fridays, 10:00-12:00
Date Topics Readings
October 11 Napster: Technology, Property & Policy Issues in Network Distribution
  
October 18
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, 2002.
  • 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)
  
October 25
The Economics of Copyright, The Internet and Network Industries

  
November 1
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; December, 2001.
  • "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)
November 8
Designing Markets: Rationale, Principles and Practice: The Case of Californian Electricity
  
  • The 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)
November 15
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: JIMS-HD4461.E87)
  • 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)
November 22 Corporate Strategies 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