Course content
The ongoing digitalization of our economy is affecting business models and changing the nature of competition in fundamental ways. Because of their multi-sidedness, network effects, and heavy dependence on technologies such as machine learning and AI, digital markets often work quite differently compared to traditional, mostly offline markets. This poses new important challenges for managers who are faced with the problem of digital disruption as well as for policy makers and enforcers across the globe who have to police these new competitive dynamics taming the new market power of big tech firms. This course will provide students with fresh perspectives and analytical frameworks to better understand these ongoing developments in the digital sphere. Topics that will be discussed throughout the course relate to, among others: platform-based business models, innovation eco-systems, envelopment strategies, consumer search behavior, recommender systems, data and algorithms as a strategic resource, as well as current policy discussions around blockchain technologies, artificial intelligence, and the potential abuse of market power in the tech sector.
The course has an applied nature, combining business strategy and economic theory to discuss practical cases and policy developments, which are shaping the way digital markets will work in Europe and globally going forward. It is designed for both business and economics students who are interested in digital markets. You will learn how to create value-creating strategies in digital markets, as well as gain an understanding of how competition policy can limit those strategies. Additionally, you will have the opportunity to see economic theory at work in digital markets and to understand the building blocks of current policy discussions at the European level and antitrust cases. In this way the course provides students with a solid toolbox and broad knowledge that is used by both strategy teams at tech firms and big corporates, policy makers and advisors. Intermediate microeconomics and basic knowledge of game theory is a useful prerequisite to follow this course.
As a preparation for the exam assignment, the course will feature a case competition, organized in collaboration with Implement Economics – part of the Implement Consulting Group. This cooperation creates the opportunity to offer a more practical perspective on some of the theoretical topics and to draw from real-life cases in the area of digital competition.
See course description in course catalogue