Advanced Seminar Economics, Policy & Econometrics: Economics of Digital Platforms

This seminar will cover key topics within the Economics of Digital Platforms, such as: Topic area 1: Tools to Create Network Effects: Ratings, Recommendations, and the Use of Big Data Topic area 2: Pricing Strategies of Platforms Topic area 3: Drivers of Platform Expansion Topic area 4: Platform Design: Nonprice Strategies, Behavioral Biases, Governance Topic area 5: Competition between platforms: compatibility decisions, multi-homing, mergers, and innovation incentives

Students will learn the key concepts in the research field of Economics of Digital Platforms. The goal is to understand and reflect upon the functioning of digital markets and where and how these may differ from more traditional markets analyzed in introductory courses. This course covers the driving forces behind platform businesses with a focus on network effects. The course builds on original research on this topic as well as case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. In addition, students will be able to analyze how platform behavior affects economic welfare and what challenges may result for economic policy.

The coursework involves reading scientific papers and further academic elaboration and research on a specific topic related to the seminar's overall theme. The students will be asked to (i) summarize the key insights on one of the seminar topics in a written essay (seminar paper), and to (ii) present their finding in class in a 30-minutes presentation, followed by 15 minutes of audience discussion. The examination will consist of these two parts: (i) the written seminar paper, and (ii) the oral in-class presentation. Active classroom participation is expected during the entire course of the seminar. In addition, students are expected to attend at least one meeting with the instructor. They should present the progress made working on their assigned topic until that point, including but not limited to a sketch of the outlines of their paper and presentation and a summary of the main learnings they have identified.

Principles of Economics (for Master in Management)

Students will self-study selected articles related to the assigned topic and will be coached throughout the semester by an instructor. A key learning objective is the ability to read, understand and reflect upon scientific articles on the seminar topic. Students will research reference materials, identify potential gaps in the academic literature and public understanding of the focal topic, and learn to derive policy suggestions based on the scientific evidence. A further learning objective is the communication of the key insights to the seminar group, i.e., to other students. Students are encouraged to form and work in groups (most likely of two, depending on class size).