This course examines the economic principles that underlie digital competition and innovation. It begins by introducing basic microeconomic principles and then delves into exploring the strategies of firms and governments in the digital economy, along with their implications for markets, consumers, and society. The course introduces a wide range of topics, including network effects, platform competition, data privacy issues, intellectual property, and antitrust policy.
LEARNING OUTCOMES
Demonstrate a fair understanding of the basic microeconomic principles that form the foundation of digital competition and innovation.
Apply microeconomic concepts such as supply and demand, market structure, cost analysis, and pricing strategies to analyze and interpret the functioning of digital markets.
Identify and explain the key economic drivers behind digital competition and innovation, including factors such as economies of scale, network effects, and information asymmetry.
Apply economic reasoning to analyze the effects of digital competition and innovation on market outcomes, including consumer surplus, producer surplus, market efficiency, and market concentration.
Evaluate the role of government intervention and regulation in digital markets from a microeconomic perspective, considering both the benefits and potential distortions they may introduce.
KNOWLEDGE AND UNDERSTANDING
Demonstrate knowledge and understanding of the economic principles that shape digital competition and innovation, including the key theories, concepts, and models relevant to the field.
Explain the relationship between digital markets, the digital economy, and society, considering the interplay of economic factors, technological advancements, and social dynamics.
Recognize and evaluate the implications of digital competition on markets, consumers, and society, including both positive and negative outcomes.
APPLYING KNOWLEDGE AND UNDERSTANDING
Analyze real-world case studies to digital economy, innovation and related policy interventions.
Assess the effectiveness of different strategies employed by firms and governments in the digital economy.
Evaluate the effects of digital competition on market outcomes, consumer welfare, innovation, and overall economic efficiency.
MAKING JUDGEMENTS
Critically evaluate the economic implications of different strategies and policies in the digital economy, taking into account their potential benefits, drawbacks, and unintended consequences.
Assess the ethical and social considerations associated with digital competition and innovation, weighing the trade-offs between economic efficiency, consumer welfare, privacy, equity, and societal well-being.
Formulate reasoned judgments and arguments based on economic analysis, incorporating relevant evidence and counterarguments in support of specific positions or policy recommendations.
COMMUNICATION SKILLS
Effectively communicate economic concepts, theories, and analysis related to digital competition and innovation, using clear and concise language that is appropriate for diverse audiences, including policymakers, industry professionals, and the general public.
Present economic arguments and findings in a coherent and structured manner.
Engage in discussions and debates on economic issues related to digital ecomomy and innovation.
LEARNING SKILLS
Engage in independent and self-directed learning, demonstrating the ability to acquire and integrate new knowledge and perspectives related to the economics of digital competition and innovation.
Locate, evaluate, and critically analyze relevant academic literature, research papers, and industry reports to deepen understanding and support arguments.
Collaborate effectively in group work and team projects, contributing actively, respecting diverse perspectives, and leveraging collective expertise to achieve shared learning objectives.
LEARNING OUTCOMES
Demonstrate a fair understanding of the basic microeconomic principles that form the foundation of digital competition and innovation.
Apply microeconomic concepts such as supply and demand, market structure, cost analysis, and pricing strategies to analyze and interpret the functioning of digital markets.
Identify and explain the key economic drivers behind digital competition and innovation, including factors such as economies of scale, network effects, and information asymmetry.
Apply economic reasoning to analyze the effects of digital competition and innovation on market outcomes, including consumer surplus, producer surplus, market efficiency, and market concentration.
Evaluate the role of government intervention and regulation in digital markets from a microeconomic perspective, considering both the benefits and potential distortions they may introduce.
KNOWLEDGE AND UNDERSTANDING
Demonstrate knowledge and understanding of the economic principles that shape digital competition and innovation, including the key theories, concepts, and models relevant to the field.
Explain the relationship between digital markets, the digital economy, and society, considering the interplay of economic factors, technological advancements, and social dynamics.
Recognize and evaluate the implications of digital competition on markets, consumers, and society, including both positive and negative outcomes.
APPLYING KNOWLEDGE AND UNDERSTANDING
Analyze real-world case studies to digital economy, innovation and related policy interventions.
Assess the effectiveness of different strategies employed by firms and governments in the digital economy.
Evaluate the effects of digital competition on market outcomes, consumer welfare, innovation, and overall economic efficiency.
MAKING JUDGEMENTS
Critically evaluate the economic implications of different strategies and policies in the digital economy, taking into account their potential benefits, drawbacks, and unintended consequences.
Assess the ethical and social considerations associated with digital competition and innovation, weighing the trade-offs between economic efficiency, consumer welfare, privacy, equity, and societal well-being.
Formulate reasoned judgments and arguments based on economic analysis, incorporating relevant evidence and counterarguments in support of specific positions or policy recommendations.
COMMUNICATION SKILLS
Effectively communicate economic concepts, theories, and analysis related to digital competition and innovation, using clear and concise language that is appropriate for diverse audiences, including policymakers, industry professionals, and the general public.
Present economic arguments and findings in a coherent and structured manner.
Engage in discussions and debates on economic issues related to digital ecomomy and innovation.
LEARNING SKILLS
Engage in independent and self-directed learning, demonstrating the ability to acquire and integrate new knowledge and perspectives related to the economics of digital competition and innovation.
Locate, evaluate, and critically analyze relevant academic literature, research papers, and industry reports to deepen understanding and support arguments.
Collaborate effectively in group work and team projects, contributing actively, respecting diverse perspectives, and leveraging collective expertise to achieve shared learning objectives.
scheda docente
materiale didattico
1) Basic Economic Concepts
a) Consumption theory
b) Production theory
c) Economies of scale
d) Imperfectly competitive markets
2) Social and economic networks
a) Definition
b) Main characteristics
c) Graph analysis
3) Innovation
a) Key concepts
b) Technological diffusion
c) Matching Markets
d) Market Failures
e) Public Policies
4) Platforms
a) Key concepts
b) Within-group network effects
c) Cross-group network effects
d) What a platform is and is not
e) Different types of platforms
5) Sources of networks in platforms
a) Rating and review systems
b) Recommendations
c) Cost of collecting and analyzing data
6) Market Equilibrium and Platform pricing
a) The general platform pricing problem
b) Monopolistic platforms and pricing distortions
c) Price discrimination
d) The 'freemium' strategy
e) Non-pricing strategies
7) Rationales for regulatory interventions
a) Competition policy and antitrust
b) Data and privacy protection
c) Intellectual property rights
d) Taxing the giants
e) Regulation 2.0
8) Current and future challenges
a) The future of digital platforms
b) AI
c) AI and platforms
Belleflamme, Paul, and Martin Peitz. The Economics of Platforms. Cambridge University Press, 2021. Syllabus code: BP2021.
Parker, Geoffrey G.; Van Alstyne, Marshall W.; Choudary, Sangeet Paul. Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You W. W. Norton & Company, 2016.
The Economy. CORE Project. https://core-econ.org/the-economy/?lang=en . Syllabus code: CORE.
Other readings will be indicated in due course.
Other sources:
Birke, Daniel. Social networks and their economics: Influencing consumer choice. John Wiley & Sons, 2013. Syllabus code: B2013.
Jackson, Matthew O. Social and economic networks. Vol. 3. Princeton: Princeton university press, 2008. Syllabus code: J2008.
Mansell, Robin, and William Edward Steinmueller. Advanced introduction to platform economics. Edward Elgar Publishing, 2020. Syllabus code: MS2020.
Varian, Hal R., Joseph Farrell, and Carl Shapiro. The economics of information technology: An introduction. Cambridge University Press, 2004.
Programma
1) Basic Economic Concepts
a) Consumption theory
b) Production theory
c) Economies of scale
d) Imperfectly competitive markets
2) Social and economic networks
a) Definition
b) Main characteristics
c) Graph analysis
3) Innovation
a) Key concepts
b) Technological diffusion
c) Matching Markets
d) Market Failures
e) Public Policies
4) Platforms
a) Key concepts
b) Within-group network effects
c) Cross-group network effects
d) What a platform is and is not
e) Different types of platforms
5) Sources of networks in platforms
a) Rating and review systems
b) Recommendations
c) Cost of collecting and analyzing data
6) Market Equilibrium and Platform pricing
a) The general platform pricing problem
b) Monopolistic platforms and pricing distortions
c) Price discrimination
d) The 'freemium' strategy
e) Non-pricing strategies
7) Rationales for regulatory interventions
a) Competition policy and antitrust
b) Data and privacy protection
c) Intellectual property rights
d) Taxing the giants
e) Regulation 2.0
8) Current and future challenges
a) The future of digital platforms
b) AI
c) AI and platforms
Testi Adottati
Selected chapters from:Belleflamme, Paul, and Martin Peitz. The Economics of Platforms. Cambridge University Press, 2021. Syllabus code: BP2021.
Parker, Geoffrey G.; Van Alstyne, Marshall W.; Choudary, Sangeet Paul. Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You W. W. Norton & Company, 2016.
The Economy. CORE Project. https://core-econ.org/the-economy/?lang=en . Syllabus code: CORE.
Other readings will be indicated in due course.
Other sources:
Birke, Daniel. Social networks and their economics: Influencing consumer choice. John Wiley & Sons, 2013. Syllabus code: B2013.
Jackson, Matthew O. Social and economic networks. Vol. 3. Princeton: Princeton university press, 2008. Syllabus code: J2008.
Mansell, Robin, and William Edward Steinmueller. Advanced introduction to platform economics. Edward Elgar Publishing, 2020. Syllabus code: MS2020.
Varian, Hal R., Joseph Farrell, and Carl Shapiro. The economics of information technology: An introduction. Cambridge University Press, 2004.
Bibliografia Di Riferimento
This syllabus will be subject to changes and updates during the course. The final reading list for each topic will be available step by step. In this way, I'll be able to tailor the contents of this course to students' needs, interests, and backgrounds. Please check this syllabus on a regular basis for any updatesModalità Erogazione
Teaching methods - Lectures - Tutorials with active student participation - Case studies and discussions Learning methods - Active class participation - Taking notes in class - Search for study material in the library and on-line - Studying the assigned basic readings on textbooks, handouts and journal articles - Reading and studying official documents (treaties, directives, regulations, reports etc...)Modalità Frequenza
Attendance is not mandatory but highly recommended. Attending students are typically able to reap more benefits from the course and more easily meet the learning objectives. Punctuality is mandatory.Modalità Valutazione
Assessment method Attending students (not less than 20 lectures out of 28 ): 50% of the final grade: class participation and assignments (a presentation in class and a short paper) 50% of the final grade: oral exam on all the course material Non-attending students (less than 20 lectures): written exam (consisting of two essay questions) and oral exam on all the course material In the attribution of the final grade for the exam, several key factors will be considered. Among these, the level and depth of knowledge of the topics covered play a fundamental role. Equally important is the ability to critically analyze a topic, demonstrating a deep and thoughtful understanding. Additionally, the use of specific and appropriate vocabulary, reflecting mastery of the subject matter, will be considered. These elements together will contribute to defining the final grade, reflecting an accurate assessment of the skills and knowledge acquired.