ECON 3233/Fall 2007 Prof. C. Rogers ECON 3233- INFORMATION, TECHNOLOGY AND THE ECONOMY “Technology Changes. Economic principles do not.” – Shapiro & Varian (1998) Day/time: T & H, 9 – 10:15 Office: 328 Hester Hall Room: 2030 Gaylord Hall Phone: 325-5843 Office Hrs: W 1:00-3:00 and by appointment E-mail: [email protected] Overview: This course provides a general overview of the information economy. We will explore the extent to which information goods differ from other goods in the economy by appealing to basic economic principles. We will consider a wide array of topics, including the growth and extent of e-commerce, pricing strategies for information goods, implications for market structure, information exchange, network externalities, taxation of the Internet, and information policy. Students will be expected to use web browsers, download needed course materials, and complete a project relating to a current policy issue. Prerequisite: Principles of Microeconomics (ECON 1123). Required Texts: (Both are available at Amazon.com new and used.) Order these as soon as possible. 1. [IR]: Shapiro, Cal and Hal Varian. Information Rules: A Strategic Guide to the Network Economy, (Harvard University Press) 1998. Details on availability and 1st chapter are at www.inforules.com. 2. [RE]: Liebowitz, Stan J. Rethinking the Network Economy: The True Forces That Drive the Digital Marketplace (New York) September 2002. ISBN: 0814406491. The Preface and Introductory chapter are available at http://www.utdallas.edu/~liebowit/book/chapter1.html#_Toc536554 Other Required Course Materials: (These are needed immediately!) 1. https://learn.ou.edu is OU’s classroom management platform. Course information will be posted for your convenience. Make sure you have access to this and resolve issues as soon as possible. Note: If you use a different e-mail server (AOL or HOTMAIL) have your OU e-mail forwarded to your other account to receive course reminders etc. 2. Adobe Acrobat Reader (available for free from www.adobe.com) will be needed to read course materials posted in portable document format (.pdf). 3. Homework discussion questions are provided in a single document available the course webpage. Download this document ASAP. 4. Review quizzes are provided on the course website. Special Needs: "Any student in this course who has a disability that may prevent him or her from fully demonstrating his or her abilities should contact me personally as soon as possible so we can discuss accommodations necessary to ensure full participation and facilitate your educational opportunities." – Provost’s Office Academic Integrity: Students are responsible for being familiar with OU’s policies and procedures concerning academic misconduct posted at http://www.ou.edu/provost/integrity-rights/. Academic Misconduct is defined as “any act that improperly affects the evaluation of a student’s academic performance or achievement.” Any violation of the code will result in automatic failure of the course. Grading: The grading scale will be as follows: A => 90 - 100 %; B => 80 – 89.9 %; C =>70 – 79.9 %; D =>60 – 69.9 % F =>less than 60%ECON 3233/Fall 2007 Prof. C. Rogers Course Evaluation: Due Dates and Component Weights • Exams will include multiple choice (similar to quizzes), short answers, & problems. - Exam I Thursday, September 27 20% - Exam II Thursday, November 8 20% - Comprehensive Final Exam Friday, December 14, 8-10 a.m. 25% • Quizzes (weekly) 15% Practice quizzes will be posted on the course web site. In-class quizzes will be very similar to practice quizzes. One quiz will be dropped for the final grade tally. • Student Project – Due: Thursday, November 27 (5% penalty per 24 hours late) 15% Students will investigate a current policy topic such as spamming, piracy, and Internet taxation. The project will include using on-line databases to find useful references, creating an annotated bibliography, synthesizing literature, applying course concepts, and giving a group presentation during the final 2 weeks of class. A portion of the final exam will be based on the projects. Detailed instructions are posted on the course website. • Attendance, Participation & Extra Credit 5% -Students who miss the first week of class will be dropped from the course unless the absences are excused and documented per OU policy AND the instructor is notified in advance of the absence. -Students are expected to bring written answers to the homework assignments and to be prepared to discuss them in class. Students will be called on to answer these. -Extra credit opportunities will be provided throughout the semester Makeup Policy No make up quizzes or exams will be given. All absences must be properly documented AND the instructor notified within 48 hours of the absence. The weight of an excused exam will be added to that of the final exam. Excused quizzes will be dropped from the quiz component total. Topics and Schedule (IR refers to Shapiro and Varian (1998) and RE refers to Liebowitz (2002)) Part I: Introduction and Features of New Economy Overview of technology and information (various readings) Digital Market Place and information goods (RE Chapters 1 &2, IR chapter 1) Part II: Economic Analysis of Information Goods Pricing Information and Marketing (IR Chapters 2 & 3)) Rights Management (IR Chapter 4) Lock-In & Network Effects (IR Chapters 5, 6 & 7, RE Chapter 3) Competition and Standards (IR Chapters 8 & 9) Part III: Internet Policy Extent of E-tailing (RE Chapter 4) Information Policy (IR Chapter 10, RE Chapter 5) Copyright and the Internet (RE Chapter 7) Course Checklist: Complete ASAP 1. Download the reference and discussion questions document from the course website. 2. Complete Academic Misconduct Quiz/contract. 3. Order/buy required books.ECON 3233/Fall 2007 Prof. C. Rogers ECON 3233 Student Project STEP 1. Due October 9. Consider the following topics. Write a short paragraph discussing which topic you would prefer to research in greater detail. You will be assigned a topic and perspective based on your discussion. (5 points) Topics: 1. Pirates on the Internet: Should they be stopped? 2. Spam: Is there a cure? 3. Internet taxation: Should digital goods be taxed? Perspectives: 1. Consumer perspective 2. Producer/corporate perspective 3.