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Principles of Digital Economics

2022/2023
Учебный год
ENG
Обучение ведется на английском языке
4
Кредиты
Статус:
Курс по выбору
Когда читается:
4-й курс, 2 модуль

Преподаватель

Course Syllabus

Abstract

The world is becoming digital, and digitalization transforms both economy and society at a fast pace. Innovations and developments in information and communication technology have laid the foundations for the economic revolution we are witnessing on a global scale. The course introduces students to the principles of digital economics, the economics branch investigating how the interaction between markets and essential innovations in telecommunications and information technology has shaped the modern economy. The field of digital economics is characterized by transient market behavior, diverse market ecosystem stakeholders, feedback mechanisms, globalization, and technology dependencies never seen in any market before. This course equips students with the competencies to understand the theoretical basis for digital economics and how these theories can be applied to studying real-world economics and business phenomena. Concepts, models, and economic principles helpful in analyzing the digital business economy will be taught and applied to real-life cases.
Learning Objectives

Learning Objectives

  • On completion of the course, students will have competencies (defined as a combination of related abilities, knowledge, and skills) that enable them to act effectively in a digital economy business environment.
Expected Learning Outcomes

Expected Learning Outcomes

  • Understand what is meant by the digitization of the economy and how it is related to the digitization of communication networks and the production and storage of digital information
  • Explain how information and communication technology has evolved toward increasingly complex systems and applications.
  • Identify stakeholders in the ecosystem of a company in the digital market and their interactions and analyze the impact each stakeholder has on the market performance.
  • Explain the concepts of marginal cost, exclusivity, commodities, and transaction costs for digital services.
  • Explain why some digital goods and services can be offered free of charge
  • Understand why service bundling is particularly simple for digital goods and services.
  • Understand the concepts of competition, cooperation, and coopetition in the digital economy.
  • Identify network effects associated with a particular digital service and the impact the network effects may have on the temporal evolution of the market.
  • Understand the concepts of diminishing returns, increasing returns, and path dependence in the context of the digital economy
  • Identify and classify lock-in mechanisms associated with digital technology or service.
  • Explain how network effects may cause lock-in and sometimes also winner-takes-all situations and form digital monopolies
  • Understand the concepts of horizontal integration, vertical backward integration, and vertical forward acquisition, and explain how mergers and acquisitions have shaped digital markets
  • Analyze the impacts of standards on the market for digital services and why standards commoditize technologies and services.
  • Identify the different types of stakeholders in digital markets.
  • Use the business model canvas to model digital businesses and explain the business model of popular digital services
  • Explain how net neutrality promotes innovation, prompts competition, and supports the free exchange of information on the Internet.
  • Identify reasons why strict adherence to net neutrality is not desirable in some cases, for example, to support streaming services and real-time online gaming, and discuss the implications this may have on resource sharing and network performance
Course Contents

Course Contents

  • Information and Communication Technologies and Digital Transformation of the Economy
  • Digital Goods and Services and Technological Evolution of Digital Markets
  • Key Economic Characteristics of the Digital Market
  • Strategies and Business Models in the Digital Economy
  • Net Neutrality and Digital Economy Regulation
Assessment Elements

Assessment Elements

  • non-blocking Final exam
  • non-blocking Written assignments
Interim Assessment

Interim Assessment

  • 2022/2023 2nd module
    0.6 * Final exam + 0.4 * Written assignments
Bibliography

Bibliography

Recommended Core Bibliography

  • Knapp, J., Zeratsky, J., & Kowitz, B. (2016). Sprint : How to Solve Big Problems and Test New Ideas in Just Five Days (Vol. First Simon & Schuster hardcover edition). New York: Simon & Schuster. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1968376
  • Urbach, N., & Röglinger, M. (2019). Digitalization Cases : How Organizations Rethink Their Business for the Digital Age. Cham, Switzerland: Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1900367

Recommended Additional Bibliography

  • Curien, N., & Brousseau, E. (2007). Internet and Digital Economics : Principles, Methods and Applications. Cambridge: Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=206557