The Economics of Information Technology is a concise and accessible review of 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 network effects. Hal Varian outlines the basic economics of these industries while Joseph Farrell and Carl Shapiro describe the impact of these factors on competition policy. The volume is an ideal introduction for undergraduate and graduate students in economics, business strategy, law and related areas.

About the Authors

Hal R. Varian is the Class of 1944 Professor at the School of Information Management and Systems, the Haas School of Business, and the Department of Economics at the University of California, Berkeley.

Joseph Farrell is Professor of Economics in the Department of Economics at the University of California, Berkeley. He has served as Deputy Assistant Attorney General and Chief Economist at the Anti-Trust Division, US Department of Justice, 2000–1.

Carl Shapiro is the Transamerica Professor of Business Strategy at the Haas School of Business at the University of California at Berkeley. He also is Director of the Institute of Business and Economic Research, and Professor of Economics in the Economics Department at the University of California, Berkeley.

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