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For this project, you will have the opportunity to integrate everything that has been covered and apply it to a standards war that is currently underway.
STEP ONE: Review the learning objectives for each of the course modules and the lessons located at the end of the chapters in Information Rules(ISBN: 0-87584-863-x) to help you develop the list of issues to look for. Do this before you begin your research. You will need to be thinking like an economist as you do your research on the emergence of e-books, the people who read them, the choices of devices and ways to read them, and the viable alternatives.
STEP TWO: Read the articles, follow the links, and do additional research, as needed.
A must read to set the stage is "The Future of Reading" � the cover story for the March 8, 2010 issue of FORTUNE magazine. And, for an article suggesting that printed textbooks are not about to be replaced by e-books, see "The Device Versus the Book" (05/01/10). Think about how you read books.
The number of choices has moved from just a few to quite a few. You can find comparisons of the many e-readers at both Wkipedia (http://en.wikipedia.org/wiki/Comparison_of_e-book_readers) and eBook Reader Review (http://ebook-reader-review.toptenreviews.com/). Use them as jumping off points for your further research. Be sure that your knowledge of this market is current — the holidays are a prime time for new product introductions!
Keep in mind that recent developments have added non-dedicated devices to the ways in which one can read e-books, including the iPad, which some analysts have suggested is a very real threat to e-readers.
STEP THREE: Report what you found and interpret your findings based on the economic concepts and ideas covered in this course.
Describe the current situation. You should include a brief description of each of the major contenders as well as the various players in the market. Hint: What are the ways that e-book content can be read?
Analyze and explain the strategies being used by the various players using the frameworks developed in Shapiro and Varian.
Predict who will be the winner of the war. Use economic theory and concepts to justify your prediction. Obviously, there’s no right or wrong answer to your prediction, so this final project will be evaluated on the basis of how well you:
research and explain the products being developed
research the players and their stake in these products
analyze the alliances and their strategies
base your conclusion on your analysis and evidence
tie your analysis and conclusions to the readings
Please do not chose the iPad as the one you think will win. Chose any other one. Some terms to think about while writing the paper are: lock-in, migration costs, evolution/revolution strategies, bundling, open source/proprietary, versioning, interoperability, APIs, brand loyalty/ recognition, openness/open source, brand-specific training,network externalities, positive/negative feedback,personalization/customizaiton, performance/backwards compatibility,standards,mergers and joint ventures, switching costs, consumer inertia, entrenchment, loyalty programs, the gutenberg project, eink, supply, demand, equilibrium, price determination, ceilings, floors, sustitutes, expectations in the market,price sensitivity, complements, differential pricing, value-added information services, consumer expectations, etc. If you have any questions feel free to contact me. Please use at least 10 of the 15 citations from the book (ISBN listed above) Thanks!
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