This course examines how digital technologies transform firms, markets, labor, and public policy. It combines economic theory with real-world cases on platforms, data, AI, networks, and innovation strategy.

Microeconomics, Macroeconomics, some game theory.

The course begins by introducing the key characteristics of the digital economy, including the role of intangible assets, scalability, and near-zero marginal costs. It then explores the economics of technological change, drawing on classical and modern theories of innovation to explain how digital technologies disrupt existing industries and create new markets. A central part of the course focuses on information economics, highlighting how digital platforms reduce (but do not eliminate) problems such as asymmetric information, search costs, and trust. Building on this, students analyze network effects and two-sided markets, which are fundamental to understanding the rise of dominant digital platforms such as Amazon, Google, and Uber. The course also investigates the growing importance of data as an economic asset, examining how firms collect, analyze, and monetize data to generate competitive advantage. It addresses the implications of data-driven business models for market structure, competition, and consumer welfare. Further topics include the economics of artificial intelligence and automation, with particular attention to their impact on productivity, labor markets, and skill demand. The course also explores the gig economy and the transformation of work in digital labor markets. Finally, the course considers the broader societal and policy implications of digital innovation. It analyzes issues such as market concentration, regulation of digital platforms, privacy, and the role of governments in shaping the digital economy. Special attention is given to recent regulatory frameworks, including those developed by the European Commission. Throughout the course, theoretical insights are combined with real-world case studies of leading digital firms, enabling students to apply economic concepts to contemporary business and policy challenges.

There isn’t a comprehensive reference text for this course. Readings will be assigned on a weekly basis by the instructor. Slides will also be made available on Luiss learn. Two most useful references are: 1) Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. New York: W. W. Norton & Company. 2) Haskel, J., & Westlake, S. (2017). Capitalism Without Capital: The Rise of the Intangible Economy. Princeton, NJ: Princeton University Press.

Lectures. Class discussion. Group work. Presentations.

One written midterm exam (open questions only: no multiple choice). Group work: each group will give a presentation on a topic to be chosen from a list given by the instructor. One individual essay.

A strong interest in economics and an attitude towards analytic reasoning (a working knowledge of the main tools for data analysis would be great).