Digital and Network Economics (2026)
Lecture (M.Sc.)
| Read by | Prof. Dr. Germain Gaudin |
| Content | 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 | – The students can describe and explain microeconomic theory concepts applied to network industries and digital markets. – The students can apply mathematical techniques to tackle microeconomic problems in network industries and digital markets. – The students can analyse the relevant economic effects of digital technology, including regulation. – The students can analyse the relevant economic effects that prevail in network industries, including regulation. |
| Weekly time slot | Fri., 2:00 – 3:30 pm |
| First session | April 24, 2026 |
| Room | HS 1221 |
| Language | English |
| Requirements | – 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 |
| Literature | – 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. |
| Materials | Available soon on the ILIAS course page. Password: DNE-2026 |
| ECTS | 6 |
| Final exam | Written exam, 90 minutes, date TBA |
Exercise course (Main tutorial)
| Given by | Dr. Niklas Nagel |
| Weekly time slot | Wed., 4:15 – 5:45 pm |
| First session | April 29, 2026 |
| Room | HS Fahnenbergplatz (note that this is a room change) |
| Language | English |