This course aims at providing the basic microeconomic models for communication networks, describe the business models of the Internet value chain and analyze various pricing and competition issues.

Topics covered can include

  1. Key Economic Concepts
    • Microeconomic models for consumers, producers, social welfare maximization.
    • Market mechanisms, competitive equilibria, regulation concepts.
    • Pricing issues
    • Marginal cost pricing, peak load pricing, lock-in.
  2. Externalities
    • Positive externalities and network effects.
    • Pricing in two-sided markets.
    • Negative externalities and congestion pricing, information issues.
  3. Pricing Theory
    • Monopoly pricing, price discrimination, bundling, multipart tariffs.
    • Cost-based pricing: Subsidy-free prices and pricing in practice (LRIC, FDC).
  4. Economics of Network Protocols
    • Economics of flow control and bandwidth sharing.
    • TCP and fairness issues in the Internet.
  5. Regulation in Telecommunications
    • Pricing access networks, LLU.
  6. Interconnection in the Internet
    • Peering and transit agreements.
    • Peering games, paid peering.
  7. Competition in the Current Internet
    • Tussles in the Internet ecosystem, evolution of the Internet value chain.
    • Competition of CDNs, access and transit ISPs, content service providers (CSPs).
    • The Net Neutrality debate.

12 Credits
Prerequisites:

Faculty:

May-Aug 2016 Courcoubetis
Jan-Apr 2015 Courcoubetis

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