Schedule

Instructors, topics, and schedule are subject to change.

Course sessions in more detail

Read a short description of each session in the Digital Economy course

Why digital markets do not work as they should (Massimo Motta)

In this session, we shall focus on market features such as network effects, two-sidedness, scale and scope economies (also in data), switching costs, behavioural biases which hinder contestability in digital markets. The session will also serve as an introduction to the course, and will mention some of the policy issues which will resurface throughout the course.

Digital auctions, I: The online advertisement market and insights from Auction Theory (Antonio Penta)

This session introduces you to the market for online advertisement. We shall then use basic elements of auction theory to understand the evolution of the mechanisms used to sell online advertisement space

Platforms I: Concepts and market definition (Martin Peitz)

This session will cover:

• sources of network effects
• the role of rating and recommendation systems,
• platform value creation and monetization strategies
• single-homing vs. multi-homing,
• market tipping
• market definition when dealing with platforms (including the multi-sided markets approach and zero-price markets)

Digital auctions, II: Multi-unit auctions for online advertisement; evidence and effects (Antonio Penta)

This session focuses on the main current multi-unit auction formats (the GSP and VCG auctions), gives insights on possible market effects of digital auctions, and discusses some relevant empirical evidence.

Platforms, II: Pricing and governance (Martin Peitz)

In this session we shall deal with:

• price structure of a platform
• rationales for free offers, dynamic pricing, pricing by competing platforms
• platform governance rules regarding user access and on-platform user behaviour
• platform information management
• misalignment of optimal private and public regulation of on-platform user behavior.

Mergers in digital markets, I: Analysis and policy (Massimo Motta)

After a brief introduction to the main effects of mergers and related policy issues, we shall deal with widely discussed topics related to mergers in digital markets, such as acquisition of potential competitors and killer acquisitions.

Data analysis of digital cases I. - Working with large datasets (Gabor Koltay)

This session helps you to plan the data collection in a digital case and provides you a toolkit to summarize the data in an effective way.

• Types of data generated by digital services
• How to work with large datasets?
• Tools to describe and visualize the data
• Making comparisons
• Conditional probabilities

Mergers in digital markets, II: Policy and cases (Massimo Motta)

Building on the previous sessions, possible policy options will be analysed. We shall then discuss a few recent cases, including Facebook/Instagram, Facebook/Whatsapp and Google/Waze, where among other things the importance of data in the merger assessment will be discussed.

Tying, I: Analysis and theories of harm (Chiara Fumagalli)

The session introduces tying and bundling and their purposes and effects in general, before presenting the theories of harm identified by recent economic theory (as well as possible efficiency defences)

Data analysis of digital cases II. - An introduction to causal analysis, Gabor Koltay

In this session you will learn how to analyze experiments that are common in digital services. You will also become familiar with other popular tools that are used to produce evidence on effects in digital cases. 

• Experiments and AB testing
• Difference-in-differences
• Matching
• Event studies

Platforms, III: Potentially anti-competitive platform practices (Martin Peitz)

This session will build upon topics covered in previous sessions and apply them to specific conduct by platforms:

• Partial vertical integration and steering of certain users including self-preferencing
• exclusive content on platforms
• tying and bundling across different platform services
• best-price clauses.

Tying, II: Cases (Chiara Fumagalli)

We start the discussion of tying cases with the classical but still fundamental Microsoft cases (US and EU), before focusing on the EU’s Google Android case.

Mergers in digital markets, III: Cases (Massimo Motta)

In this session we shall discuss other recent cases concerning digital firms, including the South American case Walmart/Cornershop, and Google/Fitbit (which will also allow us to further discuss issues of privacy).

Exclusive dealing and fidelity payments, I: Theory (Chiara Fumagalli)

Modern economic theory shows that exclusivity provisions in contracts as well as rebates, discounts and other discriminatory practices towards buyers allow a dominant company to exclude rivals or hinder their expansion. The link between theory and practice will also be analysed.

Exclusive dealing and fidelity payments, II: Cases (Chiara Fumagalli)

Recent unilateral conduct/abuse of dominance cases of involving digital sectors will be discussed, such as Qualcomm, Google AdSense, and Google Android (Revenue-Sharing Agreements)

Vertical foreclosure: Theories of harm and cases (Massimo Motta)

Vertical foreclosure in its various forms (from straightforward refusal to supply to subtle degradation of interoperability) has often met with the skepticism of the Chicago School critique. We explain under what circumstances such critique does not apply and why they are likely t be found in digital markets. We then discuss the EU’s Google Shopping case.

Other recent and ongoing abuse of dominance cases (C Fumagalli, M Motta and M Peitz – and participants!)

In many jurisdictions around the world, antitrust authorities have opened investigations against large dominant digital platforms, many of which are still ongoing. We shall briefly introduce the participants to some of these cases and ask for their views on them. This is meant to be an opportunity for an open and frank discussion, as well as informing about the most recent antitrust developments.

Policy developments: A general discussion (Martin Peitz)

Dissatisfaction with the current state of affairs in digital industries is common across countres and continents, and policy initiatives are mushrooming – from calls to reform antitrust laws, to introduce some regulation in various forms and degrees, to consider a more ‘integrated’ approach involving also consumer protection laws, fair competition laws, and privacy regulation. Martin Peitz will tell us about the recent initiatives, before opening a general discussion on these issues.

Chatham House Rule

In order to promote a frank, open and constructive discussion, this course will be conducted under the Chatham House Rule, which states that "participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed."