Essays in Industrial Organization and Information Technology

Chapter 1 studies how consumers’ switching costs affect the pricing and profits of firms competing in two-sided markets such as Apple and Google in the smartphone market. When two-sided markets are dynamic – rather than merely static – I show that switching costs lower the first-period price if network externalities are strong, which is in contrast to what has been found in one-sided markets. By contrast, switching costs soften price competition in the initial period if network externalities are weak and consumers are more patient than the platforms. Moreover, an increase in switching costs on one side decreases the first-period price on the other side. Chapter 2 examines firms’ incentives to invest in local and flexible resources when demand is uncertain and correlated. I find that market power of the monopolist providing flexible resources distorts investment incentives, while competition mitigates them. The extent of improvement depends critically on demand correlation and the cost of capacity: under social optimum and monopoly, if the flexible resource is cheap, the relationship between investment and correlation is positive, and if it is costly, the relationship becomes negative; under duopoly, the relationship is positive. The analysis also sheds light on some policy discussions in markets such as cloud computing. Chapter 3 develops a theory of sequential investments in cybersecurity. The regulator can use safety standards and liability rules to increase security. I show that the joint use of an optimal standard and a full liability rule leads to underinvestment ex ante and overinvestment ex post. Instead, switching to a partial liability rule can correct the inefficiencies. This suggests that to improve security, the regulator should encourage not only firms, but also consumers to invest in security.

Privacy Tradeoffs in Information Technology Law

The thesis aims to make the dynamics of the tradeoffs involving privacy more visible; both theoretically and in two of the central current policy debates in European data protection law, the right to be forgotten and online tracking. In doing so, it offers an explanation for data protection law from an economic perspective and provides a basis for the evaluation of further data protection measures.

Geometric and Combinatorial Aspects of NonEquilibrium Statistical Mechanics

Non-Equilibrium Statistical Mechanics is a broad subject. Grossly speaking, it deals with systems which have not yet relaxed to an equilibrium state, or else with systems which are in a steady non-equilibrium state, or with more general situations. They are characterized by external forcing and internal fluxes, resulting in a net production of entropy which quantifies dissipation and the extent by which, by the Second Law of Thermodynamics, time-reversal invariance is broken. In this thesis we discuss some of the mathematical structures involved with generic discrete-state-space non-equilibrium systems, that we depict with networks in all analogous to electrical networks. We define suitable observables and derive their linear regime relationships, we discuss a duality between external and internal observables that reverses the role of the system and of the environment, we show that network observables serve as constraints for a derivation of the minimum entropy production principle. We dwell on deep combinatorial aspects regarding linear response determinants, which are related to spanning tree polynomials in graph theory, and we give a geometrical interpretation of observables in terms of Wilson loops of a connection and gauge degrees of freedom. We specialize the formalism to continuous-time Markov chains, we give a physical interpretation for observables in terms of locally detailed balanced rates, we prove many variants of the fluctuation theorem, and show that a well-known expression for the entropy production due to Schnakenberg descends from considerations of gauge invariance, where the gauge symmetry is related to the freedom in the choice of a prior probability distribution. As an additional topic of geometrical flavor related to continuous-time Markov chains, we discuss the Fisher-Rao geometry of nonequilibrium decay modes, showing that the Fisher matrix contains information about many aspects of non-equilibrium behavior, including non-equilibrium phase transitions and superposition of modes. We establish a sort of statistical equivalence principle and discuss the behavior of the Fisher matrix under time-reversal. To conclude, we propose that geometry and combinatorics might greatly increase our understanding of nonequilibrium phenomena.

Il sarto tra Medioevo e prima Età moderna a Bologna e in altre città dell’Emilia Romagna

Il lavoro di Elisa Tosi Brandi riguarda il mestiere del sarto nel basso Medioevo e si sviluppa utilizzando due prospettive differenti. Da un lato, infatti, si è deciso di seguire una tradizione di studi oramai consolidata, che privilegia l’indagine degli aspetti economici e politici, dall’altro si è scelto di non trascurare la storia dei prodotti degli artigiani. L’approccio utilizzato in questa tesi tiene insieme entrambe le prospettive di ricerca, tentando dunque di indagare i produttori e i prodotti così come le fasi e i metodi di lavoro. Ciò senza ignorare, da un lato, indagini di tipo politico, economico e sociale, poiché tali oggetti sono lo specchio della società che li ha ideati e creati e da cui non si può prescindere e, dall’altro, indagini di tipo tecnico, poiché gli oggetti sono rivelatori del complesso patrimonio di conoscenze artigianali. Partendo dal caso di studio della Società dei sarti della città di Bologna, la tesi di Elisa Tosi Brandi ricostruisce questo mestiere confrontando tra loro fonti inedite (statuti corporativi, matricole, estimi) e studi effettuati su altre aree italiane. La ricca documentazione conservata ha consentito di mettere in luce l’organizzazione di questo lavoro, di collocare abitazioni e botteghe nell’area del mercato e nel più ampio tessuto cittadino, di individuare i percorsi commerciali e di approvvigionamento. L’ultima parte della tesi offre l’analisi di alcune fonti materiali al fine di ricostruire le tecniche sartoriali medievali intrecciando tutte le fonti consultate: dai documenti scritti si passa pertanto agli abiti che offrono informazioni dirette sulle tecniche di taglio ed assemblaggio.