97358 - DIGITAL ECONOMICS

Learning outcomes

The first part of this course builds on the notions learned in the introductory courses of Economics (I and II) to provide students with a clear understanding of the unique dynamics and economic principles that govern social networks and digital platforms. They will explore the strategic behavior of firms in the digital space and the main economic implications of such markets, addressing a series of challenges possibly related to platform regulation and governance, network effects, competition policy, firm behavior in the presence of network externalities, and the pricing strategies of platform operators. In the second part, students will learn the fundamental principles of geolocation technologies and practical skills in using GIS software for spatial analysis and mapping. By the end of the course, students will proficiently apply GIS tools to collect, manipulate, and interpret geospatial data, fostering their ability to make informed decisions and effectively communicate spatial information.

Course contents

The first module of the course provides an introduction to the economics of digital platforms and network industries. It examines how digital technologies shape firm strategies and market outcomes, focusing on phenomena such as direct and indirect network effects, multi-sided markets, and the implications for pricing, market power, and welfare.

More specifically, the first part of the course will address the following topics:

1. Introduction to digital markets and network industries
2. Network effects and platform competition
3. Two-sided markets: theory and applications
4. Market power and pricing in digital environments
5. Data as a source of value and strategic advantage
6. Policy challenges: regulation, governance, and competition in digital markets

The second module of the course introduces economists to the fundamentals of digital and spatial data and the tools used to analyze it. Beginning with an overview of spatial data and its importance in economic research, the course guides students through visualizing and interpreting geographic data. It explores the unique characteristics of spatial data, presents real-world economic applications, and surveys user-friendly tools like DataWrapper and Tableau. The course then delves into Geographic Information Systems (GIS), covering both theoretical foundations and hands-on applications. Key GIS topics include understanding coordinate systems, working within GIS environments, georeferencing data, creating new spatial datasets, calculating distances, and performing spatial overlays. By the end, students gain practical skills and conceptual knowledge to integrate spatial data into economic analysis.

Throughout the whole course, real-world examples and case studies will be used to illustrate how digital platforms operate and compete, and how their behavior affects consumers, businesses, and society. As for the applied second module, laboratory classes will introduce the use of QGIS open-source software to put into practice the notions introduced in class.

Readings/Bibliography

Industrial Organization of High-Technology Markets, Stefano Comino and Fabio Manenti, Edward Elgar Publishing (UK), 2014.

Reference handbook and slides for the use of GIS will by provided by the instructor. Additional material (data/codes/etc.) will be distributed through Virtuale.

Teaching methods

Theoretical and applied lectures and teamworls held in class and in the Lab, using GIS open-source tools.

Reading and discussion of research articles and real-life cases.

Assessment methods

Both modules will have a final written midterm exam over the entire program, while there will be a mandatory applied project to be delivered to pass the midterm of the second module.

The maximum possible score is 30 cum laude. The grade is graduated as follows:

<18: failed

18-23: sufficient

24-27: good

28-30: very good

30 cum laude: excellent

Teaching tools

Materials will be uploaded on the course page on the Moodle platform (http://virtuale.unibo.it).

Office hours

See the website of Giovanni Prarolo

See the website of Elias Carroni