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7/27/2019 NETWORK - Claude Crampes
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VIET NAM NATIONAL UNIVERSITY HO CHI MINH CITY
PLE UNIVERSITAIRE FRANAIS HO CHI MINH CITY
MASTER ECONOMICS AND TRADE PROFESSOR: Claude CrampesACADEMIC YEAR: 2013-2014COURSE:Network economics
COURSE SYLLABUS
I. Course Meeting:February 2014: Monday 17 to Friday 21 (3hours a day) and 5 hours on Saturday 22
II. Course Description:1. Alternative network concepts
2. Natural monopoly and infrastructuremanagement
3. Negative externalities, congestion diseconomies
4. Positive externalities, club economies
5. Competition issues
III. Course Objective:Many industries are based on a network infrastructure necessary for collecting and/or distributing
a good or a service: electricity, postal services, cable TV, airlines and ground transportation, water
and sanitation, telecommunications, etc. Industrial Organization and Public Economics provide
useful tools for the analysis of conduct and performance in these industries.
The course sketches the main features of network activities, stressing their natural monopoly
characteristics and the specificity of competition under network externalities. We explain how
users interact through material or immaterial infrastructure, protocols and applications, creating
strong externalities. We study in depth the main economic concepts that allow understanding how
network industries emerge and develop. We also pay attention to the difficulty of applying
competition analysis to these industries, and we study how antitrust intervention can interfere with
industry regulation.
IV. Course Material: Basic knowledge in microeconomics and mathematics is required. Basic concepts can befound for example in H.R. Varian "Microeconomic Analysis", 3rd Ed (June 1992), W.W. Norton A visit of Nicholas Economides' web-site at www.stern.nyu.edu/networkswill give anoutlook of the wide variety of topics covered in the Economics of Networks.
European Commission (1999), Liberalisation of network industries. Economicimplications and main policy issues, European Economy, n4,ec.europa.eu/economy_finance/publications/publication8093_en.pdf
7/27/2019 NETWORK - Claude Crampes
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J.J. Laffont and J. Tirole (2000) "Competition in Telecommunications", MIT Press. Readmainly chapters 2-6
"Special Issue on Transmission Pricing", Utilities Policy, vol.6, number 3, September1997. Read mainly M. Hsu (257-270) and R. Green (177-184)
O. Shy (2001) "The Economics of Network Industries", Cambridge University Press. Readmainly chapters 1-6.
V. Assessments:Grading based on written exam (2 hours).