A Model of Direct Network Eects
Modi ed from Scotchmer Chapter 10.
Let willingness to pay for a networked good be
W(, n) = + 1 2
where is the consumer type, assumed uniformly distributed from 0 to
some very high upper bound, and n is the number
ECON 318, Assignment 19:
1. Read the introduction. e term in exibility has generally been replaced with lock-in as suggested in the title of this article. e term nonergodicitiy never took o (I wonder why?) and instead the term path dependen
ECON 318, Assignment 15:
Aghion, Bloom, Blundell, Grith, and Howitt
1. Read Section I.
2. Read Section II. Note the rst paragraph encapsulates the Schumpeter/Arrow
dichotomy we talked about early in class.
3. Find any two publicly-traded rms
ECON 318, Assignment 16:
Green and Scotchmer Sequential Innovation
1. Read Section 1. Note two main things: the fact that both rst and second
innovators need incentives to innovate, and the dierence between ex ante
and ex post licensing agreements.
ECON 318, Assignment 17:
dAspremont and Jacquemin
R&D with Spillovers
1. Read the introduction. We have already seen spillovers in a formal model
a little bit, in Aghion et al. But there they were assumed in a very simple way
in the background. Here, spi