ECONOMICS OF DIGITAL GOODS AND ON-LINE MARKETS

Single discipline educational activity

Course Sheet

Course code:

PLG20

Academic Year of enrolment:

2022

Year of supply:

2023/2024

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in DIGITAL MARKETING

Disciplinary Sector:

Political Economy

Language:

Italian

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

CARLEI Vittorio

Cycle:

First four months

Hours of classroom activity:

Individual study hours:

114

Prerequisites:

Although no prerequisites are required, an exam of Microeconomics is recommended, not less that 6 cfu's, covering fundamental topics such as perfect competition, monopoly and oligopoly.

Objectives

The objective of the course is to provide students with a set of notions of Industrial Economics regarding the functioning of digital goods markets and markets in which traditional goods are sold electronically. In these markets, the strategic behavior of firms must consider the specific characteristics that differentiate them from traditional markets in which tangible goods are sold through traditional distribution channels. This objective is part of the degree course aimed at training business managers with the necessary knowledge to operate in the context of the 'new economy'.

EXPECTED LEARNING OUTCOMES
Students will learn to recognize and exploit in a strategic way the economic dynamics that characterize the markets of the 'new economy'. In particular, they will be led to understand the link that exists between the technologies of production and distribution of goods and services, on the one hand, and the competitive mechanisms that these generate in the markets for digital goods and online markets.

Contents

This course is devoted to the study of the functioning of digital goods markets and online markets for traditional goods. Digital goods, also known as information goods, are subject to different economic laws from those of tangible goods, just as the online sale of traditional goods and services is subject to its own imperfections and rules. This course studies the strategic behavior of firms operating in such markets, focusing on the following topics:
1. Economies of scale in the production and consumption (network externalities) of digital goods and services;
2. Competition between service networks;
3. Information asymmetries in electronic commerce, the role of reputation.
4. Competition of price and dual market: consumers 'shoppers' and consumers 'aficionados'.
5. Price discrimination and 'bundling' of digital goods
6. Centrality and visibility in electronic commerce
7. Search costs and price dispersion in e-commerce

Extended Syllabus

The program consists of the study of the following topics:
1Technology of digital goods production and related economies of scale.
2. Network externalities (consumer-side economies of scale) in the sale and use of digital goods and services.
3. Network externalities and competition among digital networks (of software, services, and distribution);
3. Information asymmetries in electronic commerce: equilibria based on 'signals', the role of reputation and that of guarantees.
4. Competition of price and dual market: consumers 'shoppers', that they aim to the lower price, and consumers 'aficionados', that they prefer to avoid risks.
5. Price discrimination and bundling of digital goods.
6. Centrality in the world wide web and visibility in electronic commerce
7. Consumer search costs and price dispersion in e-commerce

Recommended Bibliography

1. Capitolo 34 di ‘Microeconomia’, di Hal Varian, Càfoscarina, 2013.
2. Varian, H. e Shapiro, C. ‘Information rules: le regole dell’economia dell’informazione’;

Methods of Provision

Conventional

Teaching Methods

The course consists of thirty-six hours of frontal teaching, divided into two-hour lessons each. The lessons focus on the contents of the textbook, to which they are the accompaniment.
Attendance is optional, although recommended, and the final exam will obviously be the same for attending and non-attending students.

Evaluation methods

Verification of learning:

The assessment of learning takes place through an oral exam.
The examination procedures are the same for attending and non-attending students.

Contacts/More Information

All course information, teaching material and communications will take place over the e-learning platform.

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Aree

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