Search Results

Rigorous and modern―the #1 text for Intermediate Microeconomics from the chief economist at Google. This best-selling text is still the most modern presentation of the subject. The Varian approach gives students tools they can use on exams, in the rest of their classes, and in their careers after g... More

Technologies change--economic principles do not. This chapter overviews such concepts as the production costs of information goods, the nature of intellectual property, systems competition, switching costs, positive feedback loops, network effects, and standards setting in terms of the strategies th... More

This chapter explores strategies for versioning information--such as providing limited or exclusive access, greater flexibility of use, low-end and premium options, on-line and off-line options, product bundles, and Goldilocks, as well as promotional pricing--essentially creating a portfolio of offe... More

This chapter looks at strategies for leveraging the lower reproduction and distribution costs of digital goods, including setting effective terms and conditions of usage, so as to minimize illegal copying, file sharing, and other such hazards.... More

This chapter explains how to value an installed base of customers and describes the common types of consumer and supplier lock-in and their associated switching costs. It examines the effectiveness of such lock-in strategies as contractual agreements, brand-specific training, and customer loyalty pr... More

This chapter explores strategies for both buyers and sellers in terms of the lock-in cycle and the life cycle of a technology--where the costs of switching to newer technology can often lock a company into its current system or brand--and discusses when to leverage influential customers, sell comple... More

This chapter contrasts economies of scale and economies of networking and identifies four generic strategies for leveraging these networks effectively. It explores how such factors as performance versus compatibility and openness versus control can work to ignite positive feedback.... More

This chapter explains how standards change the nature of competition and affect the positions of complementors, incumbents, and innovators. It explores tactics in the formal standard setting process, including building alliances and advocating open standards.... More

By and large, the information sector continues to operate under long-standing rules of engagement designed for an entire economy. This chapter lays out the principles of competition policy and government intervention, identifies areas where the old rules have proven inadequate, and suggests changes ... More

This chapter examines the market structure of information goods and its implications for competitive pricing strategy. It focuses on several approaches to overcoming commoditization: personalizing products and prices, and establishing group rates.... More

This chapter describes the types of standards wars and identifies the key strategic assets in network markets. It lays out two basic tactics--controlled migration and performance play--and strategies for defending one's win and coming from behind.... More

In this article, University of California at Berkeley professors Carl Shapiro and Hal Varian explain how a "versioning" strategy can enable a company to distinguish its products from the competition and protect its prices from collapse. This insightful article will be essential reading for any execu... More

In this article, Bob Zider, president of the Beta Group, a California-based firm that invests in commercializing new technologies, presents an analysis of present-day venture capitalists and shows why its practitioners have a lot more in common with investment bankers than you might think. The popul... More

The rapid growth of the Internet and the World Wide Web is transforming the way information is accessed and used. New models for distributing, sharing, linking, and marketing information are appearing. This volume examines emerging economic and business models for global publishing and information a... More

In Information Rules, authors Shapiro and Varian reveal that many classic economic concepts can provide the insight and understanding necessary to succeed in the information age. They argue that if managers seriously want to develop effective strategies for competing in the new economy, they must un... More

The Economics of Information Technology is a concise and accessible review of some of the important economic factors affecting information technology industries. These industries are characterized by high fixed costs and low marginal costs of production, large switching costs for users, and strong ... More