Economics and E-commerce

Photograph of a five dollar bill on a computer keyboard.

Photograph of a five dollar bill on a computer keyboard. (Courtesy of Daniel Bersak.)


MIT Course Number


As Taught In

Fall 2000



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Course Description

This course uses theoretical models and studies of "old economy" industries to help understand the growth and future of electronic commerce. We will begin with a discussion of relevant topics from industrial organization including monopoly pricing, price discrimination, product differentiation, barriers to entry, network externalities, search and first-mover advantages. The largest part of the course will be a discussion of a number of e-industries. In this section we'll discuss extensions and applications of the ideas from the first part of the course, draw analogies to previous technological revolutions and read current case studies. Finally, we'll discuss two additional topics: bubbles in asset markets and the macroeconomic effects of the Internet.

Glenn Ellison. 14.27 Economics and E-commerce, Fall 2000. (Massachusetts Institute of Technology: MIT OpenCourseWare), (Accessed). License: Creative Commons BY-NC-SA

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