Principles of Digital Economics
- 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.
- 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
- 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
- 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
- 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