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推荐微观经济学Microeconomics英文课件PPT 35 Information Technology
Chapter Thirty-FiveInformation TechnologyInformation TechnologiesThe crucial ideas are:ComplementarityNetwork externalityInformation Technologies;ComplementarityDefinition: Commodity A complements commodity B if more of commodity A increases the value of an extra unit of commodity B.More software increases the value of a computer.More roads increase the value of a car.Information Technologies;Network ExternalityDefinition: A commodity has a positive (negative) network externality if the utility to a consumer of that commodity increases (decreases) as more people also consume the commodity.Email gives more utility to any one user if more other people use email.A highway gives less utility to any one user as more people use it (congestion).ComplementarityInformation technologies have increased greatly the complementarities between commodities.Computers and operating systems (OS).DVD players and DVD disks.WiFi sites and laptop computers.Cell phones and cell phone towers.ComplementarityHow should a firm behave when it produces a commodity that complements another commodity?The problem is: When you make more of your product (commodity A) you increase the value of firm B’s product (commodity B). Can you get for yourself some of gain you create for firm B?ComplementarityAn obvious strategy is for firms A and B to cooperate somewhat with each other.Microsoft releases part of its OS to firms making software that runs under its OS.DVD manufacturers agree upon a standard format for their disks.ComplementarityThe price of a computer is pC.The price of the OS is pOS.The quantities demanded of computers and the OS depends upon pC + pOS, not just pC or just pOS.ComplementarityThe price of a computer is pC.The price of the OS is pOS.The quantities demanded of computers and the OS depends upon pC + pOS, not just pC or just pOS.Suppose the computer and software firms’ marginal production costs are zero. Fixed costs are FC and FOS.ComplementaritySuppose the firms do not collude.The
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