BUSINESS 33221

BUSINESS 33221--2013:
ECONOMICS AND POLICY IN THE TELECOM, MEDIA AND TECHNOLOGY INDUSTRIES

The T.A.s are Albert Wong--awong4@chicagobooth.edu and Avigail Kifer--kifer@uchicago.edu

Office contact: Lexy Coleman--lexy.coleman@uchicago.edu (4-1050)

Course Information:

Syallabus 2013 (we will modify as we go along to keep up with current events in the industry)

Week 1 Overview, Microeconomics Review, Wireless, New Product Adoption
A. Economic Background to Network Industries
B. CASE: Bharti Airtel (READ IN THE PACKET BEFORE CLASS 1)
C. Wireless Industry

Assignments Due:
Prepare answers to CASE QUESTIONS on Bharti case for class discussion: no write-up due but we will discuss in class [this is the first assignment]

Readings:
CASE: Bharti Airtel in Africa (in packet)
for further reading and data on wireless, FCC Wireless Competition Report, 2013

Week 2: Horizontal Mergers and Anti-Trust
A. Anti-trust overview
B. CASE: Proposed Echostar/DirecTV Merger
C. CASE: Proposed AT&T/T-Mobile Merger

Assignments Due:
Prepare Echostar-DirecTV merger case-1-2 page write-up due. Apply the merger guidelines and decide if they should approve merger
Prepare AT&T/T-Mobile Merger but no write up due. Apply the merger guidelines and decide if they should oppose merger

Readings:
Merger Guidelines
CASE: Echostar-DirecTV (Pro merger document; Anti-merger document)
CASE: AT&T/T-Mobile (FCC Staff Analysis; AT&T Response); FCC conference of economists on the merger issues (LONG transcript--skim for key issues only)

Week 3: Vertical Mergers and Anti-Trust
A. CASE: Disney/Pixar
B. Why vertical mergers?
C. CASE: MS Trial

Assignments Due:
Prepare Disney/Pixar merger case-1-2 page write-up due. CASE QUESTIONS
Prepare MS Trial Case (in packet) 1-2 page no write-up, prepare arguments for your case CASE QUESTIONS (we will debate in class)

Readings:
CASE: Disney/Pixar (in packet)
MS Trial: Readings in Packet + European Settlement (original trial was about browsers, Europe case centered on media players but same issues)

Week 4: Mobile Phone Competition
A. CASE: Apple exclusive contracts, 2008
B. CASE: HTC, 2012

Assignments Due:
Prepare answer to why Apple and AT&T signed an exclusive agreement for the iPhone. 1-2 page write-up due
Prepare Handset competition/HTC case but no write-up due. CASE QUESTIONS

Readings:
CASE: Apple 2012--especially the sections on The iPhone Gambles (in packet)
"iPhone seen boosting AT&T, hurting Sprint", Reuters Jun 17, 2007
CASE: HTC 2012 (in packet)

Week 5: Platform Competition: Apps
A. CASE: iPhone vs Android App Market
B. CASE: Business Apps
C. CASE: Angry Birds

Assignments Due:
Prepare App For That case but no write up due CA SE QUESTIONS
Prepare AppDirect case 1-2 page write-up due (groups ok) CASE QUESTIONS
Prepare Angry Birds case but no write up due CASE QUESTIONS

Readings:
CASE: Developing an App for That (in packet)
CASE: AppDirect (in packet)
The Future of Mobile: March 2013 (section on Apps), Business Insider
CASE: Angry Birds (in packet)

Week 6: Platform Competition: Facebook, Content Developers
A. CASE: Foursquare, 2-Sided Platform Strategy (Part I)
B. CASE: Facebook
C. CASE: Zynga

Assignments Due:
Prepare Foursquare case 1-2 page write up due (groups ok) CASE QUESTIONS
Prepare Facebook/Zynga case no write-up due CASE QUESTIONS

Readings:
CASE: Foursquare (in packet)
CASE: Facebook (in packet)
CASE: Zynga (in packet)

Week 7: Platform Competition: Books and Readers
A. CASE: Kindles and Readers
B. 2-sided Platform Strategy (Part II)
C. CASE: Google Books (start)

Assignment Due:
Prepare Books/Kindle Case 1-2 page write up due CASE QUESTIONS
Prepare Google Library Case no write-up due CASE Qs: 1) Do you think Google Books Violates copyright law? 2) Should it be Allowed on Economic Grounds?

Week 8: Books (cont.), Search
A. Google Books (finish)
B. CASE: Microsoft Search

Assignment Due:
Prepare Microsoft Search Case 1-2 page write-up due CASE QUESTIONS
Research MOOCs to discuss the industry--will it consolidate? is it a platform business? who will make money? etc.

Readings
CASE: Micorsoft Search (in packet)
The End of the University as We Know It, American Interest, 2013
Is Coursera the Beginning of the End, Forbes, 2012
Massive Online Open Courses, NYT, 2012
Laptop U, The New Yorker, 2013
Online Courses, Economist, 2012

Week 9: Memorial day: no class.
Special assignment (groups OK):
Prepare a mini-case applying an economic issue from class to a current industry or company decision. Include two published articles with background info and a basic outline (1-page) of the key economic issues raised in the case. DUE by Thurs 5/30 by 12:00 noon central time.

To test the delivery mechanism for the final exams, E-mail this assignment to tmtfinal@gmail.com (one per group)

Goal: Have you demonstrate you can apply a concept from class to an industry situation or company decision. Best subjects are ones that permit various views to debate. Aim for something that we could include in a packet or debate in class. This process will help prepare you for the final.

Format:
1) 1 page that includes Subject and 1 pgh overview of topic and outline of how the case applies to a section of the course and what the subjects of the class discussion/debate would be
2) Two articles on the subject in 1) with citation (author, date, publication). Online sources/blogs are ok if the articles are meaty.

Week 10: Tech Clusters/Local TMT
A. MOOCs (finish)
B. CASE: Local Initiatives--Austin, Chicago 1871, Broadband Efforts, Mexico City, Others
C. Finals Review

Assignment Due:
Prepare Local TMT Cases no write up due but prepare arguments for the CASE QUESTIONS (we will debate in class)

Readings:
"Austin, Texas" (in packet)
Chicago's 1871 project; News on 1871
"Cities Start Own Efforts to Speed Up Broadband," WSJ, May 19, 2008
Mexico City, MacLean's, 2012

_________________________________________________________

Hand out exam in week 10.

Take home exam, due by scheduled exam time in week 11 via email to tmtfinal@gmail.com

Last year's exam and answer key

An earlier year's exam and answer key (many subjects have changed in the class since then)