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Digital and Network Economics


Make sure to sign up for both the lecture AND the exercise course on HISinOne!



Read by Prof. Dr. Germain Gaudin

This course will cover various microeconomic aspects that are particularly relevant to network industries and the digital economy.
The first part of the course will cover “Network economics,” i.e. the economic analysis of so-called network industries such as telecommunications, energy, railways, utilities, etc.

1.    Introduction to Network Economics
2.    Natural monopoly
3.    Capacity constraints, externalities, and pricing
4.    Regulation in Network industries

The second part of the course will cover “Digital Economics,” i.e. the economic analysis of the changes in economic activity stemming from digital technology. It will build on the notions introduced in the first part of the course.

1.    Introduction to Digital Economics
2.    Privacy
3.    Recommendation
4.    Platforms and Advertising

Qualification targets
  • Provide students with a solid foundation in microeconomic theory applied to network industries and digital markets, using mathematical techniques.

  • Provide students with a deeper knowledge in the relevant economic effects of digital technology.

  • Provide students with a deeper knowledge in the relevant economic effects that prevail in network industries.

Weekly time slot

Wed., 4.15 - 5.45pm

All lectures and tutorials will be held in person this semester.


HS 3042

First session April 20th, 2023
Language English
  • Strong command of intermediate/advanced microeconomics. The following texts are suitable for preparation: M. J. Osborne and A. Rubinstein: Models in Microeconomic Theory, Open Book Publishers, 2020 (electronic version freely available on the publisher’s website), and G. A. Jehle and P. J. Reny: Advanced Microeconomic Theory, FT Prentice Hall / Pearson, 3rd Edition, 2011.

  • The courses Advanced Microeconomics I is strongly recommended as a prerequisite.

  • Good command of industrial organization. The following text is suitable for preparation: P. Belleflamme and M. Peitz: Industrial Organization: Markets and Strategies, Cambridge University Press, 2nd Edition, 2015.

  • The courses Industrial Organization is recommended as a prerequisite.

  • Strong notions in mathematics

  • Goldfarb, A., and Tucker, C., “Digital Economics,” Journal of Economic Literature, 2019, 57(1), 3-43.

  • Knieps, G., Network Economics: Principles – Strategies – Competition Policy, Springer, 2015.

  • Belleflamme, P., and Petz, M., The Economics of Platforms – Concepts and Strategy, CUP, 2021.


Available on ILIAS:

Password: DNE-2023

Final exam Written exam, 90 minutes, date tba


Exercise course

Given by Yijun Zhang
Weekly time slot Thu., 4.15 - 5.45pm
Room HS 3042
First session April 27th, 2023
Language English