ECONOMICS OF DIGITAL MARKETS

Single discipline educational activity

Course Sheet

Course code:

000449L

Academic Year of enrolment:

2020

Year of supply:

2020/2021

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in ECONOMICS AND BUSINESS ANALYTICS

Disciplinary Sector:

Applied Economics

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

SARRA Alessandro

Cycle:

First semester

Hours of classroom activity:

Individual study hours:

153

Prerequisites:

None

Objectives

EDUCATIONAL OBJECTIVES
The course will contribute to the general objectives of the degree course aiming at forming professionals able to understand and analyse the competitive dynamics of the digital markets
In particular, the logical and analytical instruments will be provided to understand the competitive relations among enterprises in the digital markets, their specificities, antitrust rules and regulation measures, and their systemic implications (market efficiency, growth). Particular emphasis will be put on the use of case studies as an instrument to solicit the application of the theoretical knowledge acquired.

LEARNING OUTCOMES
1) Knowledge and understanding.
At the end of the course the students will have the cognitive instruments to:
- understand and elaborate the theoretical and empirical basis necessary to study the competitive dynamics of digital markets;
- critically discuss sector and scenario analyses;
- understand the competitive and regulatory issues typical of the markets of digital economy;
- understand the logic of intervention of antitrust and regulation authorities.

2) Applying knowledge and understanding.
At the end of the course, students will be able to:
- critically analyse and discuss case studies relative to Italian and European experiences in antitrust and regulation;
- recognize/discuss links between the evolution of the market scenarios, firm competitive strategies and antitrust risks;
- evaluate the adoption and the potential impact of regulatory choices concerning digital markets;
- apply the knowledge acquired in different situations and real problems, proposing solutions and discussing their implications.

3) Communication skills.
At the end of the course, students will have acquired the following communication skills:
- understand the relationships between economic and managerial language in the analysis of issues relevant for digital markets;
- expose and discuss sector/market analysis for business strategy
- expose and discuss antitrust and regulation issues, and interact in the research for solutions in multidisciplinary contexts;

Contents

The problems that the diffusion of digital technologies and ICT posed to the strategic behaviour of the enterprises and to the orderly and efficient functioning of the markets will be illustrated and discussed during the course. In particular the course aims at presenting to students, also through the analysis of case-studies:
1) the theoretical and empirical basis for sector analysis and for the formulation of competitive strategies in the digital economy field;
2) the theoretical instruments and the logic of analysis with which antitrust and regulation authorities -Italian and European- intervene to safeguard the proper functioning of the same markets.

Extended Syllabus

Part I. Competitive strategies in digital markets.
- the Industrial Organization of the digital markets
- Business strategies and revenue models in the digital economy
- Internet search and algorithmic selection
- Online advertising and online news

Part II: A toolbox for market analysis

- Perfect competition, monopolies, monopsonies and dominant firms
- Oligopoly
- Monopolistic competition and product differentiation
- Price discrimination and other complex methods for price setting
- Vertical integration and vertical restrictions
- Information
- Patents and technological innovation

Part III. Competition and regulation problems in the markets of digital economy
- Network externalities
- Multisided markets and other reference models
- Strategic behaviour in digital markets
- The economics of internet standards
- the economics of copyright and digital rights managements
- Open source and file sharing
- Economics of Big Data

Part IV. Case studies

Recommended Bibliography

Carlton D.W., Perloff J.M., Organizzazione Industriale, McGraw-Hill (available in English: Carlton D.W., Perloff J.M., Modern Industrial Organization, Pearson, last edition): chapters from 1 to 12

Comino S., Manenti F.M., Economia di internet & delle information and communication technology, Giappichelli, last edition: chapters 3, 4, 5, 7

Viscusi W.K., Vernon J.M., Harrington J.E., Economics of Regulation and Antitrust, The MIT Press: chapters 9, 14

Bauer J.M., Latzer M., Handbook on the Economics of the Internet, Edward Elgar, last edition: chapters 2, 10, 17, 18, 19, 20, 21, 23, 25

During the course, the students will be provided with additional material on case studies

Methods of Provision

Conventional

Teaching Methods

The teaching will consist of lectures, case studies and practical training.
The lectures will treat theoretical topics and will be held by the professor, with the occasional participation of experts invited to present their experiences on the topics treated.
The practical training will require the application of the acquired knowledge in the discussion of applied issued, also using questionnaires and exercises. Their aim is to verify the level of understanding of the topics treated, and to provide students with self-assessment occasions and improve the results of the study.
Case studies will be treated in group work (groups of 5/6 students) and will aim both at developing the ability to apply acquired knowledge in practical contexts, and at improving communicative skills through the presentation of the results obtained.
Course attendance is not compulsory. The attending students only will be admitted to group work.

Evaluation methods

Verification of learning:

The exam will consist of a written and an oral test.
The written test will consist of 10 multi-choice questions, and 5 essay questions to be answered within a maximum number of words. The total score for the written test is 30 marks. The test paper will explain how the marks are distributed, based on the relevance/complexity of each question.
The final mark of the written test will be given by the sum of the partial scores obtained.
The written test will last 90 minutes.
The oral test will consist of 3/5 questions aimed at verifying the knowledge of the material referred to, the communicative skills, the judgement autonomy and the comprehension skills. Particular attention will be given to the language used, at the capacity to establish links between different topics, and at the ability to critically interact on topics proposed by the examiner.
The oral test will be judged with a score on 30.
The final result will be given by the average of the marks obtained with written and oral test.
For students that will have participated in group works, the exam will include also the discussion of the work done. The score obtained in this discussion will be considered in the definition of the final marks.

Contacts/More Information

E-mail: alessandro.sarra@unich.it
Students reception days and hours: Wednesday from 11:00 to 13:00

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

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