Papers by Nicholas Economides
Biographical Information: Married. Papers are cross-listed in the following subject categories: [... more Biographical Information: Married. Papers are cross-listed in the following subject categories: [N] = Network Economics
Mr. Economides is a professor of economics at the Stern School of Business at New York University... more Mr. Economides is a professor of economics at the Stern School of Business at New York University and the executive director of the Networks, Electronic Commerce, and Telecommunications Institute. His fields of specialization include economics of networks and technical compatibility and standardization, as well as structure and organization of financial markets and payments systems. Previously,
The Antitrust Bulletin, 2009
The Oxford Handbook of the Economics of Networks, 2016
The chapter discusses the issue of a possible abolition of network neutrality and the introductio... more The chapter discusses the issue of a possible abolition of network neutrality and the introduction of paid prioritization by residential broadband access networks. In short-run analysis where bandwidth is fixed and in the absence of congestion, network neutrality tends to maximize total surplus. When an ISP violates network neutrality and invests the extra profits to bandwidth expansion, the presence of more bandwidth alleviates the allocative distortion, and can even reverse it. The chapter discusses the network neutrality issue under the assumption of congestion, and characterizes the set of utility functions for which network neutrality is optimal, as well as utility functions where it is optimal to prioritize. The chapter also reviews regulatory rules in the United States on network neutrality.
A parimutuel market microstructure for contingent claims trading is proposed and analyzed. A pari... more A parimutuel market microstructure for contingent claims trading is proposed and analyzed. A parimutuel microstructure is a call auction where relative equilibrium prices of contingent claims are endogenously determined using a specific mechanism. We propose a market microstructure incorporating parimutuel principles which provides for notional derivatives transactions, limit orders, and bundling of contingent claims across states. This microstructure will be used by Longitude Inc.'s clients to transact derivatives on economic statistics, weather, insurance losses and other types of risks. JPMorgan Chase and Deutsche Bank are some of the f'mancial institutions that will be holding parimutuel auctions in early 2002.
ttached commodity, and is exclusively protected against infringement. Similarly, the law allows a... more ttached commodity, and is exclusively protected against infringement. Similarly, the law allows a tradename to be registered and used exclusively by a business entity. Legal protection of trademarks is granted with respect to specified and related goods and does not extend to all products. For example, the trademark FORD owned by the automobile manufacturer does not cover unrelated items, say clothing. Thus, the same (or similar) trademark can be used by different owners in different product categories. Trademarks qualify for legal protection immediately upon use when they are "inherently distinctive." For marks that are not "inherently distinctive," the owner must establish a "secondary meaning" or "acquired distinctiveness" to receive legal trademark protection. Inherently distinctive trademarks fall into three types, "fanciful," "arbitrary," and "suggestive" trademarks. Fanciful trademarks are words that usuall...
We study the incentives for a "diagonal" merger between two Internet Service Providers,... more We study the incentives for a "diagonal" merger between two Internet Service Providers, one a wireless retail only ISP in two origination markets, and the second a vertically integrated wired retailer in one market and an upstream provider in the other. The merger's effects depend on differentiation in access modalities; only with high differentiation does the merger have positive welfare effects. We focus on post-merger foreclosure, which, when it happens, only takes place in the market where the merger is horizontal and not where the merger is vertical. The Network architecture used is meant to capture Internet routing.
Research Handbook on Governance of the Internet
SSRN Electronic Journal, 2011
Competition for the Mobile Internet, 2003
Wireless telecommunications have become very commonplace in today’s life. Cellular telecommunicat... more Wireless telecommunications have become very commonplace in today’s life. Cellular telecommunications have expanded rapidly, and governments around the world have reaped huge sums of money for the use of airwaves by mobile operators. However, to assess their evolution to broadband, 3G, and to other technologies it is very useful to take a step back, examine which services the present technologies provide, what future technologies can provide, and how any new technology would integrate in the evolving telecommunications services and equipment industries.
Lecture Notes in Computer Science, 2008
European Financial Management, 2005
This paper evaluates the effectiveness of several pricing rules intended to promoteentry into a n... more This paper evaluates the effectiveness of several pricing rules intended to promoteentry into a network industry dominated by an incumbent carrier. Drawing on thework of Cournot and Hotelling, we develop a model of competition between twointerconnected networks. In a symmetric equilibrium, the price of cross-networkcalls exceeds the price of internal calls. This" calling circle discount" tends to" tip" the industry to a monopoly equilibrium as would a network externality. Byequalizing charges for terminating calls, reciprocity eliminates ...
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We analyze oligopolistic competition in a multi-period dynamic setting for goods with network eff... more We analyze oligopolistic competition in a multi-period dynamic setting for goods with network effects. Two or more infinitely-lived firms produce incompatible products differentiated in their inherent quality. Consumers live for a single period and receive the network effect of the previous period's sales. We show existence and characterize Markov perfect equilibria that are unique given market shares at the beginning of time and fast convergence to the long run equilibrium. We find that, generally, small network effects help the higher quality firm ...
We analyze two-and three-dimensional variants of Hotelling's model of differentiated product... more We analyze two-and three-dimensional variants of Hotelling's model of differentiated products. In our setup, consumers can place different importance on each product attribute; this is measured by a weight in the disutility of distance in each dimension. Two firms play a two-stage game; they choose locations in stage 1 and prices in stage 2. We seek subgame-perfect equilibria. We find that all such equilibria have maximal differentiation in one dimension only; in all other dimensions, they have minimum differentiation. An equilibrium ...
This paper evaluates the effectiveness of several pricing rules intended to promote entry into a ... more This paper evaluates the effectiveness of several pricing rules intended to promote entry into a network industry dominated by an incumbent carrier. Drawing on the work of Cournot and Hotelling, we develop a model of competition between two interconnected networks. ... To our knowledge, this item is not available for download. To find whether it is available, there are three options: 1. Check below under "Related research" whether another version of this item is available online. 2. Check on the provider's web page whether it is in fact available. 3. Perform a ...
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Papers by Nicholas Economides