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Digitalization has changed the way business are run nowadays and how they will be run in the future. Differences may lie in consumer behavior, firm behavior, and in the modes of competition. We discuss models of several digital markets in order to highlight characteristic properties, derive optimal strategies, and eventually discuss the welfare properties. Topics include matchmakers, booking platforms, price comparison sites, recommender systems, and open source software. The main focus is laid on different roles of market intermediaries in the digital economy.

Course Goal: In this course, students will

  • learn characteristic properties of the digital economy,
  • understand microeconomic models of different online markets,
  • and discuss strategic decisions in such markets.


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