INTERNET AND NETWORK ECONOMICS

The course provides an understanding of economics of the internet and the digital economy. It will provide students with concepts from economic theory to make sense of the significant transformations brought about by the emergence and diffusion of information and communication technologies (ICTs). Economics is not only a body of knowledge and concepts, but it also relies on a methodological framework to examine social and economic outcomes, largely based on statistical and quantitative concepts. These concepts and methods are often at the centre of both business and policy decisions. Against this backdrop, the course will also provide students with the ability to critically study and interpret economic data. Students will gain insights on the key changes spurred by the digitalisation of our economy. These include the emergence of new technologies, such as artificial intelligence, new business models such as online platforms and advertising and how these changes impact key economic variables, such as a productivity and employment. As a result, the students will be able to understand the new environment in which businesses and economic activity takes place.

Basic knowledge of economic concepts, such as labour, capital, productivity and an introductory level of statistical analysis.

Knowledge and understanding: The course will provide students with a vast overview of ideas and theories to understand the process of digitalization and the impact it has on economic activity. Students will also learn key concepts to better understand and assess technological change brought about by the digital transformation. Moreover, they will also become familiar with economic data and methodologies commonly use in empirical analysis. Applying knowledge and understanding: Students will be able to apply the knowledge in the following ways: - Ability to assess the importance of new emerging digital technologies for businesses. - Appreciate the importance of standards, platforms and infrastructure in the digital economy and how these impact business decisions. - Evaluate and understand the implications of the digital transformation for the economy, the labour market and productivity. - Confidently analyse key economic variables, such as productivity, investment and employment and their relationship with the digital transformation. - Accurately select variables and data to measure the digital economy. Making judgements: Students will be able to analyse the implications of the digital transformation for businesses and key economic variables. They will do so by relying on different understandings of these phenomena, that will be discussed extensively throughout the course. Finally, throughout the course student will develop the ability to critically assess economic arguments. Communications Skills: The course will provide students with accurate and correct terms to understand and discuss issues relating to technological change and its relationship with economic variables. Oral presentations will be a crucial aspect of the course, providing students with the confidence to clearly discuss in public key economic aspects relating to the digital transformation. Learning skills: The course will empower students with the confidence and competence to critically discuss economic concepts and empirical facts related to the digital transformation and the economic changes brought about by the internet.

The course will be structured around 4 key modules: - Overview of the digital economy and measurement issues. - Infrastructure, standards, and platforms. - Applications of digital transformations, e.g. AI, platform business models, and intangible assets. - Digitalisation, productivity, and the future of work.

Lecture slides, research papers and articles will be made available during the course on the e-learning platform. Selected chapters from the Oxford Handbook of the Digital Economy. 2012. Oxford University Press, Oxford.

The course will blend face-to-face lectures with group presentations and discussions based on readings. Some key topics will be discussed with guest lecturers.

Proficiency and attainment of the learning outcomes will be assessed through group presentations during the term, which will provide further opportunity for discussion in class, a group project, and a written exam. These assessments will count for 30%, 40% and 30% respectively. Group presentations will take place weekly and will involve the discussion of the weekly reading. Students will be required to focus on key aspects of the reading: 1. The main issue that the paper discusses (Knowledge and understanding). 2. The argument that the authors put forward in regards with the paper’s main question (Applying knowledge and understanding). 3. The empirical approach (if applicable) the authors have chosen: the choice of data and challenges related to this (Applying knowledge and understanding). 4. An assessment of the strengths and weaknesses of the paper’s argument (Making judgements). 5. Discuss the aspects above in a clear and concise manner, using appropriate vocabulary and concepts (Communication skills). The written exam will ask students to discuss one out of a choice of three broad topics from the module. It will take place in an “open-book” setting, students will be required to: 1. Show an understanding of the topic they chose to discuss (Knowledge and understanding). 2. Discuss the main issues concerning the topic (Applying knowledge and understanding). 3. Discuss the key arguments that the literature has put forward in relation to the issues concerning the topic (Making judgement). 4. Present their arguments in a clear and concise manner, using appropriate vocabulary and concepts (Communication skills). Finally, the project will provide students with the opportunity to apply the knowledge and skills acquired during the module to a topic of their choosing that interests them. Students will present an applied, data-driven exploration of the digital transformation in the economy. This can be based on any source of data or case study. A range of relevant topics and sources will be presented in the first class of the module. While students are encouraged to come up with their own specific topic for this project, possible topics can be: 1. A focus on digital technologies in a specific country and industry. 2. A focus on a specific digital technology (AI, internet, robotization, digital trade) and its diffusion across sectors and countries. 3. A case study of business models that have undergone significant changes through internet and networks. 4. A policy challenge that has emerged through digitalization. E.g. the value of data, taxation, privacy, growing inequalities. In carrying out this project students will be expected to: 1. Present the topic the students have chosen and its relevance (Making judgements and Communication skills). 2. Discuss the key concepts that are relevant to study the topic (Applying knowledge and understanding). 3. Discuss the key issue and implications around the chosen topic (Applying knowledge and understanding and Learning skills). 4. Show how the data they chose to shed light on the issues around their chosen topic (Learning skills). 5. Present in a clear and concise manner the main results of their analysis (Learning skills and Communication skills).

Demonstrated interest in the course through attendance, participation to class and remarkable performance in the assessments.

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