!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .

%7-"/

!"#$ &'& - !"#$#%&"' )#*&"+ !"#$%&'&
PR0FESS0R: WARB BANS0N Class time: N,W: 11:uu-12:Su
0ffice: SIEPR uunn 2S8 0ffice houis: TBB
Phone: 72S-84Su hansonwstanfoiu.euu
_________________________________________________________________________________________________________

AB00T TBE CLASS
This couise helps stuuents uevelop skills in wiiting about, uiscussing, inteipieting, anu
piesenting economic policy analysis. The specific focus will be the innovation, uisiuptions,
anu policy challenges cieateu by online activities.

The Inteinet cieates entiepieneuiial oppoitunities anu stimulates economic giowth. It also
causes conceins about piivacy, antitiust, income inequality, censoiship, anu cybei
vulneiabilities. This couise looks at many of the most impoitant economic issues iaiseu by
the Inteinet - such as new business oppoitunities, uigital savings, netwoik analysis,
platfoim competition, intellectual piopeity, taxation, mobilizing collective action,
technology piizes, anu ventuie capital financing. The fiist inuustiies stuuieu aie those
alieauy heavily affecteu by the Net; such as meuia, auveitising, softwaie, anu tiavel. Next
consiueieu aie those activities cuiiently being tiansfoimeu; such as euucation, eneigy
conseivation, health caie, anu economic uevelopment. Seveial speakeis fiom leauing
technology fiims anu goveinment agencies will paiticipate.

This couise is foi any stuuent inteiesteu in high technology, consulting, entiepieneuiship,
business legal issues, anu global competition. Stuuents will have a chance to investigate anu
wiite about an appiopiiate Inteinet oppoitunity oi policy uevelopment of theii choosing.

The giaue foi this class combines inteiim wiiting exeicises, a chosen class papei, class
paiticipation, anu an optional final exam. uiauing anu auministiative specifics follow the
class session uesciiptions.

* Theie may be some substitution of ieauings as the quaitei appioaches, as well as the
scheuuling of guest speakeis. Auuitional infoimation about wiiting assignments pioviueu
in class. Links may not be active in this PBF file, will be on class site.


REQ0IREB B00KS
Note: The Evans anu the Zittiain books aie available fiee foi uownloau unuei a
!"#$%&'# !)**)+, license. The Biynjolfsson anu Saunueis book is foi puichase the
olu fashioneu way - on Amazon, as an e-book, oi at the bookstoie.
Eiik Biynjolfsson anu Auam Saunueis, -&"#. /)" 0++)'$%&)+1 2)3 0+/)"*$%&)+
4#56+)7)89 &, :#,6$;&+8 %6# <5)+)*9, NIT Piess, 2uu9.
Baviu Evans, Anuiei Bagiu, anu Richaiu Schmalensee, Invisible Engines, NIT Piess,
2uu6. Available foi uownloau heie, oi available fiom bookstoies.
}onathan Zittiain, 46# =>%>"# )/ %6# 0+%#"+#%? $+. 2)3 %) @%); 0%, available foi PBF
uownloau heie, also as a fiee e-book, oi available at bookstoies.
!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .%7-"/

REC0NNENBEB B00KS
Recommenueu books aie just that - foi those inteiesteu in puisuing a topic fuithei
but not iequiieu foi all. I've chosen thiee books that aie well wiitten, with callouts
wheie appiopiiate.
}ames uleick, 46# 0+/)"*$%&)+1 A 2&,%)"9? A 46#)"9? A =7))., Pantheon, 2u11.
Steven }ohnson, -6#"# B)). 0.#$, !)*# =")*1 46# C$%>"$7 2&,%)"9 )/ 0++)'$%&)+,
Penguin, 2u1u.
Evgeny Noiozov, (2u11), 46# C#% D#7>,&)+1 46# D$"E @&.# )/ 0+%#"+#% ="##.)*, BBS
Publisheis.

ARTICLES
Stanfoiu stuuents have access to a wiue iange of electionic jouinals - anu links to
these iesouices aie noimally pioviueu. Note: They typically only woik on campus
oi thiough a pioxy - moie on that in class. Reauing assigneu foi that uay shoulu be
completeu piioi to class.


89:; )< =:9>!?@:A5 9BC !9:DE 5FGG!55!5
N0NBAY, SEPT. 24: INTR0B0CTI0N ANB S0NE "F0T0RE BIST0RY" IN C0NP0TINu
The last fifty yeais has seen a iemaikably iapiu - yet steauy - auvance in computing
powei. This was not entiiely a suipiise, as shown by two aiticles fiom the leauing
scientists of the twentieth centuiy. Bill Noiuhaus pioviues a fascinating economic
histoiy of this piogiess, anu Biynjolfsson connects this to piouuctivity.
Reauings:
vannevai Bush, (194S), "As We Nay Think, " iepiinteu in 0+%#"$5%&)+,, Naich 1996.
Link.
Richaiu Feynman, (19S9),"Theie's Plenty of Room at the Bottom," iepiinteu in
F)>"+$7 )/ G&5")#7#5%")*#56$+&5$7 @9,%#*,, vol. 1, No.1, Naich 1992. Link.
William Noiuhaus, (2uu7), "Two Centuiies of Piouuctivity uiowth in Computing,"
}ouinal of Economic Bistoiy, pp. 128-1S9. Link.
Biynjolfsson anu Saunueis, (2uu9), "Chaptei 1: Technology, Innovation, anu
Piouuctivity in the Infoimation Age."

WEBNESBAY, SEPT. 26: NETW0RK EC0N0NICS
Connecting poweiful uevices, anu moie impoitantly the people using these gaugets,
cieates entiiely new possibilities.
Reauings:
Chui, Lofflei, Robeits, (2u1u)."The Inteinet of Things," NcKinsey Quaiteily. Link.
Wilson, uosling, uiaham, (2u12), "A Review of Facebook Reseaich in the Social
Sciences," Peispectives on Psychological Science, 7:2uS. Link.
Biynjolfsson anu Saunueis, (2uu9), "Chaptei 2: IT's Contiibution to Piouuctivity anu
Economic uiowth."

Backgiounu iecommenueu:
Pew Inteinet, (2u12) "17% of Cell Phone 0seis.," available heie. Also, check out
the othei statistical stuuies of Pew Inteinet - an excellent iesouice foi many
uiffeient topics.
!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .%7-"/

N0NBAY, 0CT0BER 1: TBE vAL0E 0F TBE INTERNET
Bow valuable is the Net. What woulu you pay to stay online oi use Facebook.
valuing new piouucts anu seivices is always a challenge - but ciitical if we aie to
anticipate theii acceptance anu uiffusion.
Reauings:
Sue Bowuen anu Avnei 0ffei, (1994), "Bouseholu Appliances anu the 0se of Time:
The 0niteu States anu Biitain since the 192us," 46# <5)+)*&5 2&,%)"9 :#'&#3, 47:4,
Novembei. Link.
Austan uoolsbee anu Pete Klenow, (2uu6), "valuing Consumei Piouucts by the Time
Spent 0sing Them: An Application to the Inteinet," A<A H$;#", $+. H")5##.&+8,, vol.
96, No. 2, pp. 1u8-11S. Link.
uieg Rosston, Scott Savage, Bonalu Waluman, (2u11), "Bouseholu Bemanu foi
Bioaubanu Inteinet Seivice," viewpoints, !)**>+&5$%&)+, )/ %6# A!GI Link.

Backgiounu iecommenueu:
Connecting Ameiica: The National Bioaubanu Plan, FCC. Link.

!"#$%&'( #*%+$%%*,"- 1lvo, Pulu, neLfllx

WEBNESBAY, 0CT0BER S: PLATF0RN EC0N0NICS
Contiolling a platfoim, such as Facebook oi Apple iTunes, can be extiemely
valuable.
Reauings:
Evans, Bagiu, anu Schmalensee, (2uu6), "Ch. 1- Ch.S," in 0+'&,&J7# <+8&+#,, pp. 1-8u.
Filistiucchi, ueiauin, anu van Bamme, (2u12), "Iuentifying Two-Siueu Naikets, BP
2u12-uu8, Tilbuig 0niveisity. Link.

!"#$%&'( #*%+$%%*,": Classlfled llsLlngs, CralgsllsL

N0NBAY, 0CT0BER 8: TBE 0NLINE ABvERTISINu NARKETPLACE
Auveitising cieates the ievenue foi uoogle anu many othei of the most successful
online fiims.
Reauings:
C. Anueison, (2uu9), "Ch. 9: New Neuia Nouels & Ch. 1u: Bow Big is the Fiee
Economy.," pp. 1SS-168.
Baviu Evans, (2uu9), "The 0nline Auveitising Inuustiy: Economics, Evolution, anu
Piivacy. Link.
IAB, (2u12), 0+%#"+#% A.'#"%&,&+8 :#'#+># :#;)"%1 KLMM =>77 N#$" :#,>7%,, Apiil.
Link.

!"#$%&'( #*%+$%%*,"- Search adverLlslng, Coogle Adwords/Adsense

WEBNESBAY, 0CT0BER 1u: B0ES TBE IPB0NE BARN TBE INTERNET.
ueneiativity is not a univeisal blessing, but uoes enable wiuespieau
expeiimentation. Can ease of use kill the goluen goose.
Reauings:
}. Zittiain, Ch. 4: The ueneiative Pattein, pp. 67-1uu.
!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .%7-"/
}. Zittiain, Ch. S: Tetheieu Appliances, Softwaie as a Seivice, anu Peifect
Enfoicement, pp. 1u1-126.
B. Noiman, (1999), "Ch. 2: uiowing 0p" anu "Ch. S: The Nove to Infoimation
Appliances," The Invisible Computei, pp.2S-68.

!"#$%&'( .*%+$%%*,"- Medla markeLs: muslc, vldeo, books.
/,0*+( 1'*23 4 .$2

N0NBAY, 0CT0BER 1S: SP0TTINu ANB F0NBINu 0PP0RT0NITIES
ventuie capital has been cential to the iapiu giowth of Inteinet companies, anu
maue a numbei of unueigiaus iich.
Reauings:
Biynjolfsson anu Saunueis, (2uu9), "Chaptei 6: Incentives foi Innovation in the
Infoimation Economy."

!"#$%&'( .*%+$%%*,"- venLure caplLal, lnsLagram.


WEBNESBAY, 0CT0BER 17: WINNER TAKE N0ST NARKETS 0NLINE
Bespite the appaient ease of entiy, many online maikets enu up highly
concentiateu.
Reauings:
Baniel Rubinfelu, "Naintenance of Nonopoly: 0.S. v. Niciosoft (2u1u)", in Kwoka,
46# A+%&%">,% :#')7>%&)+.
Bal vaiian, (2uuu), "Buying, Shaiing, anu Renting Infoimation uoous," F)>"+$7 )/
0+.>,%"&$7 <5)+)*&5,, vol. 48. No. 4.

!"#$%&'( .*%+$%%*,"- SofLware, cloud compuLlng.
/',%52+&$% 3,' 678,' /752' #$2


N0NBAY, 0CT0BER 22: EC0NNERCE S0CCESSES ANB FAIL0RES
Ecommeice uominates some piouucts anu seivices, anu baiely sciatches the suiface
foi many categoiies. Wheie it woiks, Amazon typically has a stiong piesence.
Reauings:
}. Schumpetei, (1948), "Ch. 7: The Piocess of Cieative Bestiuction," !$;&%$7&,*?
@)5&$7&,*? $+. D#*)5"$59.
Waiu Banson, (2uu8), "Ch. 7: Biscoveiing a Role 0nline: Biick-anu-Noitai Retaileis
anu the Inteinet," in 46# 0+%#"+#% $+. A*#"&5$+ O>,&+#,,.
Waiu Banson, (2u12), <5)**#"5# $+. A*#"&5$+ O>,&+#,,, uistiibuteu.

!"#$%&'( .*%+$%%*,"- Cnllne Lravel, Amazon.com

WEBNESBAY, 0CT0BER 24: NALEv0LENT C0NNERCE: SPAN ANB vIR0SES
Nany spam messages anu cybei attacks aie explicitly commeicial - attempting to
steal valuable infoimation foi piofit in a global maiket place.
Reauings:
}effiey Boase anu Baiiy Wellman, (2uu1), "A Plague of viiuses: Biological,
Computei anu Naiketing," Cuiient Sociology, vol. 49(6). Link.
!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .%7-"/
Lauia Fiieuei anu }onathan Zittiain, (2uu8), "Spam Woiks: Eviuence fiom Stock
Touts anu Coiiesponuing Naiket Activity, Bastings Communication &
Enteitainment Law }ouinal, pp. 479-S2u. Link.
}im uiles, (2u1u), "Naue-to-oiuei malwaie becomes a ieality," New Scientist, Naich.
Link.
}onathan Zittiain, (2uu8), "Ch. S: Cybeisecuiity anu the ueneiative Bilemma," The
Futuie of the Inteinet, pp. S6-61.

!"#$%&'( .*%+$%%*,"- Commerclal Malware

89:; H< @88@:;FB.;.!5 9BC G,9DD!BI!5
N0NBAY, 0CT0BER 29: PATENT TBICKETS ANB TALES 0F TR0LLS
Theie has been an explosion in online patents anu patent litigation. Is it a seiious
thieat to online innovation.
Readings:
Apple's Tiial Biief, Apple, Inc. v. Samsung, Inc. Case No. 11-cv-u1846-LBK (PSu),
}uly Su, 2u12. Link.
Samsung's Tiial Biief, Apple, Inc. v. Samsung, Inc. Case No. 11-cv-u1846-LBK (PSu),
}uly Su, 2u12. Link.
Lemley anu Shapiio, (2uuS), Piobabilistic Patents, F)>"+$7 )/ <5)+)*&5 H#",;#5%&'#,,
19:2, Spiing. Link.

!"#$%&'( .*%+$%%*,"- 1echnology llcenslng.

WEBNESBAY, 0CT0BER S1: PRIvACY & u0vERNANCE
Who wants youi infoimation, anu what uoes that imply about Inteinet goveinance.
Reauings:
}. Zittiain, "Ch. 9 Neeting the Risks of ueneiativity: Piivacy 2.u," The Futuie of the
Inteinet, pp. 2uu-2S4.
K. Stylianou, (2u1u), "An Evolutionaiy Stuuy of Clouu Seivices Piivacy Teims," F)6+
G$",6$77 F)>"+$7 )/ !)*;>%#" P 0+/)"*$%&)+ Q$3, 27:4. Link.

!"#$%&'( .*%+$%%*,"- Soclal adverLlslng.
/,0*+( 1'*23 9 .$2


N0NBAY, N0vENBER S: P0LITICS & 0NLINE ACTIvISN
With the election tomoiiow, we will uiscuss lessons leaineu about the powei of the
Net to mobilize political actions.
Reauings:
TBB as campaign piogiesses.
L. Abioms anu Ciaig Lefebvie, (2uu9), "0bama's Wiieu Campaign: Lessons foi
Public Bealth Communication," F)>"+$7 )/ 2#$7%6 !)**>+&5$%&)+. Link.

!"#$%&'( .*%+$%%*,"- ollLlcal campalgnlng



!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .%7-"/
WEBNESBAY, N0vENBER 7: CYBERWARFARE
The Stuxnet attack is an example of a state-uiiven offensive cybei attack. This iaises
numeious economic anu secuiity questions foi the Inteinet of Things.
Reauings:
}on }uiich, (2uu9), "Cybeiwai anu Customaiy Inteinational Law: The Potential of a
"Bottom-up" Appioach to an Inteinational Law of Infoimation 0peiations," Chicago
}ouinal of Inteinational Law.
Neil uanual, (2uu8), "An Intiouuction to Key Themes in the Economics of Cybei
Secuiity," in Cybei Waifaie anu Cybei Teiioiism, L. }anczewski anu Anuiew Colaiik
Euitois.

!"#$%&'( .*%+$%%*,"- SLuxneL


N0NBAY, N0vENBER 12: TBE uREAT FIREWALL
Is the Inteinet a tool foi fieeuom, oi can it be iepiession 2.u.
Reauings:
E. Noiosov, 2u11, "Ch. 4: Censois anu Sensibilities" anu "Ch. 6: Why the KuB Wants
You To }oin Facebook," 46# C#% D#7>,&)+.

!"#$%&'( .*%+$%%*,"- Chlnese lnLerneL


WEBNESBAY, N0vENBER 14: TBE vENT0RE BACKEB 0NIvERSITY
ventuie-backeu fiims such as Couiseia anu 0uacity aie teaching huge numbeis of
stuuents. Aie univeisities the next inuustiy to be uisiupteu.
Reauings:
0nline mateiial pioviueu.
!
!"#$%&'( .*%+$%%*,"- SLanford and Coursera

/,0*+( 1'*23 : .$2


<Enjoy Thanksgiving!>

N0NBAY, N0vENBER 26: TBE uL0BAL RES00RCE
Beveloping countiies stanu to gain much foi connecting to the Inteinet. Bow best
can online tools stimulate uevelopment in some of the pooiest countiies.
Reauings:
S Baitley, (2u1u), Ciowu-Souiceu Niciofinance anu Coopeiation in uioup Lenuing
}. Akei anu I. Nbiti, (2u12), "Nobile Phones anu Economic Bevelopment in Afiica,"
F)>"+$7 )/ <5)+)*&5 H#",;#5%&'#,, foithcoming.

!"#$%&'( .*%+$%%*,"- klva, SLanford uSchool.




!"#$#%&"' )*) + ,-$'#$ + .$/01$0/ !"#$#%&"'2 .$$#3-/&#$2 -$4 5#"&-6 .%7-"/
WEBNESBAY, N0vENBER 28: uL0BAL PR0B0CTI0N ANB 00TS00RCINu
Boes a "flat woilu" leau to piospeiity, oi shaieu miseiy.
Readings:
Alan Blinuei, (2uu9), "Bow Nany }obs Night Be 0ffshoiable.," Woilu Economics,
vol. 1u, No. 2, Apiil-}une. Link.
Alan Blinuei, (2uu6), "0ffshoiing: The Next Inuustiial Revolution." Link

N0NBAY, BECENBER S: PRESENTATI0NS

WEBNESBAY, BECENBER S: PRESENTATI0NS

ABNINISTRATIvE BETAILS
I1-4&$J<
You can choose eithei option. Youi choice must be maue when you submit youi majoi
papei.

@7/&#$ )< ?&/K L&$-6 @7/&#$ H< B# L&$-6
Policy Biiefs 1S% Policy Biiefs 2S%
Najoi Papei: SS% Najoi Papei: Su%
Class paiticipation: 1S% Class paiticipation: 2S%
Final exam: SS% (no final)

>-M#1 7-701 &' 4N0 O7%2 >#$4-P2 C0"0%Q01 )*
/K
L#1 R@;, #7/&#$'S

C0-46&$0'
Policy Biief 1: Weunesuay, 0ctobei 1u.
Najoi Papei Piospectus: Weunesuay, 0ctobei 17.
Policy Biief 2: Weunesuay, 0ctobei S1.
Policy Biief S: Weunesuay, Novembei 14.
Najoi Papei: Nonuay, Becembei 1u, Spm, by email.

5/N40$/' T&/K 4#"N%0$/04 4&'-Q&6&/&0'
Stuuents who have a physical, psychological, oi leaining uisability that may necessitate an
acauemic accommouation oi the use of auxiliaiy aius anu seivices in a class must initiate
the iequest with the Bisability Resouice Centei (BRC), not with the instiuctoi. The BRC
will evaluate the iequest along with the iequiieu uocumentation, iecommenu appiopiiate
accommouations, anu piepaie a veiification lettei uateu in the cuiient acauemic teim in
which the iequest is being maue. Stuuents shoulu contact the BRC as soon as possible anu
timely notice is neeueu to aiiange foi appiopiiate accommouations. The BRC is locateu at
S6S Salvatieiia Walk (phone 72S-1u66; TTY 72S-1u67).

!"#$#%&" G#N1'0 >-$-J0%0$/ IN&406&$0'
All Economics Bepaitment Couises have a common set of couise management policies,
goveining such matteis as late woik anu misseu examinations. Stuuents aie iesponsible foi
knowing these policies.

The uuiuelines cleaily state that N0 cieuit will be given foi late woik. That applies in this
couise.