Digital and Network Economics

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

• 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.

Wed., 4.15 - 5.45pm

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

HS 3042

• 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: https://ilias.uni-freiburg.de/goto.php?target=crs_3043331&client_id=unifreiburg

Password: DNE-2023